BofI Holding announces mandatory conversion of 6% series C preferreds

By Marisa Wong

Madison, Wis., April 10 - BofI Holding, Inc. exercised on April 10 its right to mandatorily convert its 6% series C non-cumulative perpetual convertible preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

On April 24, the effective date of the conversion, holders will be entitled to receive 327.86885 shares of common stock for each share of preferred stock converted, reflecting a conversion price of $30.50 per share based on the initial issuance price of $1,000 per preferred.

BofI common stock closed at $35.79 (Nasdaq: BOFI) on April 4.

There are currently 1,857 preferred shares outstanding, so a total of 608,852 common shares will be issued upon conversion of the preferreds. Cash will be paid in lieu of any fractional shares of common stock, the filing noted.

The company will pay its last dividend on the preferreds on April 15 for the quarter ended March 31, and no dividend will be declared on the preferreds for the interim period between April 1 and the mandatory conversion date.

BofI said that this mandatory conversion will not impact its earnings per share because its effect has already been assumed in the earnings per share calculations reported for prior quarters.

San Diego-based BofI is the holding company for the Bank of Internet USA, a savings bank operating primarily through the internet.

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