By Rebecca Melvin
New York, March 14 - Wintrust Financial Corp. priced $110 million of perpetual convertible preferred stock at par of $1,000 per share to yield 5% and with a 17.5% initial conversion premium, according to an FWP filing with the Securities and Exchange Commission.
Pricing of the registered, series C preferreds occurred at the cheap end of talk, which was for a dividend of 4.5% to 5% with an initial conversion premium of 17.5% to 22.5%.
The deal has a $16.5 million greenshoe and was sold via bookrunners RBC Capital Markets LLC and Bank of America Merrill Lynch. Co-managers were Sandler O'Neill + Partners LP and Wells Fargo Securities LLC.
The preferreds are non-callable until April 15, 2017 and then provisionally callable if the stock exceeds 130% of the conversion price for 20 out of 30 trading days.
Proceeds are expected to be used for general corporate purposes, including capital support for growth, acquisitions and reducing or refinancing debt.
Based in Lake Forest, Ill., Wintrust is a financial holding company.
| Issuer: | Wintrust Financial Corp.
|
| Issue: | Non-cumulative perpetual convertible preferred shares
|
| Amount: | $110 million
|
| Greenshoe: | $16.5 million
|
| Maturity: | Perpetual
|
| Bookrunners: | RBC Capital Markets LLC, Bank of America Merrill Lynch
|
| Co-managers: | Sandler O'Neill + Partners LP and Wells Fargo Securities LLC
|
| Dividend: | 5%
|
| Price: | Par of $1,000
|
| Yield: | 5%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $41.13
|
| Conversion ratio: | 24.3132 shares
|
| Call: | Non-callable until April 15, 2017, then provisionally callable if stock exceeds 130% of conversion price for 20 of 30 trading days
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 4.5%-5%, up 17.5%-22.5%
|
| Pricing date: | March 13
|
| Settlement date: | March 19
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: WTFC
|
| Stock reference price: | $35.00, VWAP on March 13
|
| Stock price: | $35.64 at close March 13
|
| Market capitalization: | $1.26 billion
|
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