UCBH prices $135 million perpetual convertible preferreds at 8.5%, up 10.1%

New York, June 5 - UCBH Holdings Inc. priced $135 million of non-cumulative perpetual convertible preferred stock with an 8.5% dividend and a 10.1% initial conversion premium.

The offering came substantially cheaper than talk for a dividend of 7.5% to 8% and a 20% to 25% conversion premium.

Each preferred is convertible into 236.1275 shares, a conversion price of $4.24.

Merrill Lynch & Co. is the bookrunner for the off-the-shelf deal, priced after Thursday's close.

There is a greenshoe for $20.25 million.

The preferreds have five years of call protection and are then provisionally callable subject to a 130% hurdle.

UCBH expects to use the net proceeds for general corporate purposes.

San Francisco-based UCBH Holdings is the holding company for United Commercial Bank, a state-chartered commercial bank serving Chinese communities and American companies doing business in China.

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