Wintrust greenshoe exercised; 7.5% equity units lifted to $230 million

By Devika Patel

Knoxville, Tenn., Dec. 15 - Underwriters for Wintrust Financial Corp.'s offering of 7.5% tangible equity units due Dec. 13, 2013 exercised their over-allotment option in full for $30 million more of the units, or 600,000 units, increasing the size of the issue to $230 million, the company said in a press release.

As previously reported, the company sold the units at par of $50.00 in a registered offering on Dec. 7, via bookrunner Bank of America Merrill Lynch, with co-managers RBC Capital Markets, Sandler O'Neill + Partners LP and Wells Fargo Securities.

The units have a conversion premium of 25% and an initial conversion price of $37.50.

Proceeds will be used to redeem all of Wintrust's fixed-rate cumulative preferred perpetual preferred stock, series B, which was sold to the U.S. Treasury under its capital purchase program.

Excess proceeds will be used for general corporate purposes. If Wintrust isn't able to redeem the series B preferred stock, it intends to use proceeds of the offerings for general corporate purposes.

The tangible equity units have full dividend protection for dividend payments above semiannual payment of 9 cents a share and takeover protection via a make-whole premium.

Based in Lake Forest, Ill., Wintrust is a financial holding company.

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