By Abigail W. Adams
Portland, Me., Feb. 23 – 1347 Property Insurance Holdings Inc. priced $16 million, or 640,000 shares, of 8% series A perpetual cumulative preferred stock at $25.00 per share after the market close Friday.
Boenning & Scattergood, Inc. is the bookrunner for the deal, which carries a greenshoe of $2.4 million, or 96,000 shares.
The initial size of the deal was $20 million, or 800,000 shares, with a greenshoe of $3 million, or 120,000 shares, according to a preliminary prospectus.
Cash dividends are payable quarterly. The preferred stock is freely callable on or after a specified date in 2023, according to the preliminary prospectus. There are no put options.
The preferred stock will be listed on Nasdaq under the ticker “PIHPP.”
Net proceeds are expected to be $14.9 million, or $17.2 million if the greenshoe is exercised. Proceeds will be used to complete the repurchase of $1.5 million shares of the company’s series B preferred stock from IWS Acquisition Corp., for future potential acquisitions and for general corporate purposes.
1347 Property Insurance Holdings entered into a stock purchase agreement with 1347 Advisors and IWS Acquisitions Corp. on Jan. 2 for the repurchase of the company’s series B preferred stock.
1347 Property Insurance Holdings repurchased 60,000 shares of the series B preferred stock from 1347 Advisors for $1.74 million, which included $1.5 million of stock plus accumulated interest.
Upon the completion of the offering of series A preferred stock, 1347 Property Insurance Holdings will repurchase 60,000 shares of series B preferred stock from IWS Acquisitions Corp. without dividend or interest payments.
1347 Property Insurance Holdings is a Tampa, Fla.-based insurance holding company specializing in providing personal property insurance in coastal regions in Florida, Texas and Louisiana.
| Issuer: | 1347 Property Insurance Holdings Inc.
|
| Issue: | Series A cumulative preferred stock
|
| Amount: | $16 million, or 640,000 shares
|
| Greenshoe: | $2.4 million, or 96,000 shares
|
| Maturity: | Perpetual
|
| Bookrunner: | Boenning & Scattergood, Inc.
|
| Co-managers | American Capital Partners LLC and Joseph Gunner & Co. LLC
|
| Dividend: | 8%, payable quarterly
|
| Par: | $25.00
|
| Yield: | 8%
|
| Call: | Non-callable until a specified date in 2023, then freely callable
|
| Pricing date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Distribution: | Off shelf
|
| Symbol: | Nasdaq: “PIHPP”
|
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