By Rebecca Melvin
New York, June 6 - Webster Financial Corp. priced $225 million of perpetual convertible preferred stock at par of $1,000 with a dividend of 8.5% and an initial conversion premium of 22.5%, according to a news release.
The 225,000 preferred shares priced at the cheap end of talk, which was for a dividend of 8% to 8.5% and an initial conversion premium of 22.5% to 27.5%.
There is an over-allotment option for $25 million, or 25,000 preferred shares, in the registered offering.
Merrill Lynch & Co. was the bookrunner, with JPMorgan and Sandler O'Neill & Partners LP acting as co-managers.
The preferred stock will be non-callable for five years and will be provisionally callable thereafter subject to a 130% price trigger.
Proceeds from the offering will be used for general corporate purposes, including increasing liquidity and providing more capital.
Waterbury, Conn.-based Webster Financial (NYSE: WBS) is the holding company for Webster Bank, NA with $17.2 billion in assets.
Issuer: | Webster Financial Corp.
|
Issue: | Convertible perpetual preferred shares
|
Amount: | $225 million, or 225,000 preferred shares
|
Greenshoe: | $25 million, or 25,000 preferred shares
|
Maturity: | Perpetual
|
Bookrunner: | Merrill Lynch & Co.
|
Co-managers: | JPMorgan and Sandler O'Neill & Partners LP
|
Dividend: | 8.5%
|
Price: | Par, $1,000 per preferred share
|
Conversion premium: | 22.5%
|
Conversion ratio: | 36.8046
|
Conversion price: | $27.17
|
Price talk: | 8%-8.5%, up 22.5%-27.5%
|
Call: | Non-callable for five years, forced conversion from June 15, 2013 at 130% hurdle
|
Net share settlement: | Yes
|
Takeover protection: | Yes, standard
|
Dividend protection: | Yes, standard
|
Pricing date: | June 5
|
Settlement: | June 11
|
Distribution: | Registered, not listed
|
Stock symbol: | NYSE: WBS
|
Stock price: | $22.18 at close June 5
|
© 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.