By Rebecca Melvin
New York, June 6 - UCBH Holdings Inc. priced $135 million of non-cumulative perpetual convertible series B preferred stock with an 8.5% dividend and a 10.1% initial conversion premium, according to a news release.
The offering came substantially cheaper than talk, which was for a dividend of 7.5% to 8% and with an initial conversion premium of 20% to 25%, according to a syndicate source.
There is a $20.25 million greenshoe.
Merrill Lynch & Co. is the bookrunner for the off-the-shelf deal.
The preferreds have five-year hard call protection and are provisionally callable thereafter subject to a 130% price hurdle.
UCBH expects to use the net proceeds from this offering 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.
| Issuer: | UCBH Holdings Inc.
|
| Issue: | Non-cumulative perpetual convertible series B preferred stock
|
| Amount: | $135 million
|
| Greenshoe: | $20.25 million
|
| Maturity: | Perpetual
|
| Bookrunner: | Merrill Lynch & Co.
|
| Dividend: | 8.5%
|
| Price: | Par
|
| Conversion premium: | 10.1%
|
| Conversion ratio: | 36.8046
|
| Conversion price: | $4.24
|
| Price talk: | 7.5%-8%, up 20%-25%
|
| Call: | Non-callable for five years, provisionally callable thereafter at 130% hurdle
|
| Takeover protection: | Yes, standard
|
| Dividend protection: | Yes, standard
|
| Pricing date: | June 5
|
| Settlement date: | June 11
|
| Distribution: | Registered, off-the-shelf
|
| Stock symbol: | Nasdaq: UCBH
|
| Stock price: | $3.85 at close June 5
|
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