By Angela McDaniels
Tacoma, Wash., Jan. 12 - Wilmington Trust Corp. registered $330 million of series A fixed-rate cumulative perpetual preferred stock it sold to the U.S. Treasury under the Troubled Asset Relief Program for public trading in an S-3 registration with the Securities and Exchange Commission.
The preferreds pay cumulative dividends at 5% per year up to but excluding Feb. 15, 2014, at which time they step up to 9%.
The preferreds will become callable at par on Feb. 15, 2012. Wilmington can call them earlier if it raises at least $82.5 million of proceeds from one or more equity offerings.
Also covered under the registration is a warrant to purchase 1,856,714 shares of common stock for $26.66 each for a total of $44.5 million. The warrant expires on Dec. 12, 2018.
If Wilmington raises at least $330 million through one or more equity offerings by Dec. 31, 2009, then the number of shares underlying the warrant will be reduced by half.
Wilmington is a financial services holding company based in Wilmington, Del.
| Issuer: | Wilmington Trust Corp.
|
| Issue: | Series A fixed-rate cumulative perpetual preferred stock
|
| Amount: | $330 million
|
| Maturity: | Perpetual
|
| Dividends: | 5% until Feb. 15, 2014, then 9%; payable quarterly
|
| Price: | $1,000
|
| Call option: | At par from Feb. 15, 2012 onward; callable earlier only if Wilmington raises $82.5 million or more through equity offering(s)
|
| Warrant: | For 1,856,714 shares of common stock
|
| Warrant exercise price: | $26.66
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| Warrant expiration: | Dec. 12, 2018
|
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