East West announces mandatory conversion of 8% series A preferreds

By Toni Weeks

San Luis Obispo, Calif., April 17 - East West Bancorp, Inc. will exercise the mandatory conversion right for all outstanding shares of its 8% series A non-cumulative perpetual convertible preferred stock, according to a press release.

The mandatory conversion was triggered on April 16, when the trading price of the common stock closed at a price that exceeded 130% of the initial conversion price of $15.39 per share, marking the 30th trading day in the previous 30 trading days on which the trading price of the common stock exceeded the 130% trigger level.

On the May 1 mandatory conversion date, holders of series A preferred stock will be entitled to receive 65.13296 shares of the company's common stock plus accrued dividends for each share of series A preferred stock converted, reflecting a conversion price of about $15.35 per share based on the initial issuance price of $1,000 per preferred.

East West common stock closed at $24.58 (Nasdaq: EWBC) on April 16.

There are currently 85,710 preferred shares outstanding, and a total of 5,582,546 common shares will be issued upon conversion of the preferreds. Cash will be paid in lieu of any fractional shares of common stock, the company said in the release.

East West Bancorp will pay its last dividend on the preferreds on May 1.

Pasadena, Calif.-based East West Bancorp is the parent company of East West Bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.