By Rebecca Melvin
New York, April 24 - East West Bancorp Inc. priced an upsized $175 million of perpetual convertible preferred shares at par of $1,000 after the market close Wednesday, according to a company news release.
The registered off-the-shelf deal was increased in size from an initial $150 million. There is a greenshoe of $25 million that was exercised Thursday, raising the deal size to $200 million.
The preferreds priced to yield a dividend of 8% with an initial conversion premium of 22.5%.
Lehman Brothers Inc. is the bookrunner.
The preferreds are non-callable for five years, with a forced conversion option after that subject to a 130% hurdle.
Proceeds from the offering will be used for general corporate purposes, including raising liquidity and capital and reducing borrowings.
Based in Pasadena, Calif., East West Bancorp is the parent company of East West Bank.
| Issuer: | East West Bancorp Inc.
|
| Issue: | Perpetual convertible preferred shares
|
| Amount: | $175 million, upsized from $150 million
|
| Greenshoe: | $25 million
|
| Bookrunner: | Lehman Brothers
|
| Maturity: | Perpetual
|
| Dividend: | 8%
|
| Price: | Par of $1,000
|
| Conversion premium: | 22.5%
|
| Conversion price: | $15.39
|
| Conversion ratio: | 64.9942
|
| Calls: | Non-callable for five years, with forced conversion thereafter subject to a 130% hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | April 23
|
| Settlement date: | April 29
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: EWBC
|
| Stock price: | $12.56 at close April 23
|
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