Flagstar Bancorp greenshoe exercised, lifts sale of preferreds and stock to $400 million

By Melissa Kory

Cleveland, Nov. 2 - Flagstar Bancorp, Inc. said its underwriter exercised its over-allotment option, adding 0.7 million shares of preferred stock to its completed $400 million public equity offerings, lifting the total to 14.2 million shares of convertible preferred stock and 115.7 million shares of common stock.

The over-allotment option also added 5.7 million shares of common stock to the offering.

JPMorgan Securities LLC was the underwriter.

The offerings resulted in $385.8 million in proceeds.

As previously reported, Flagstar originally sold $270 million of convertible preferred stock on Oct. 28 at a liquidation price of $20 per share and concurrently priced 110 million shares of common stock at $1.00 per share.

The preferred stock may be converted automatically following a vote by stockholders to authorize additional shares of common stock.

Flagstar is a Troy, Mich.-based savings and loan holding company.

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