By Paul A. Harris
St. Louis, Jan. 15 - NovaStar Financial Inc. priced an upsized $65 million offering of series C cumulative redeemable perpetual preferred shares Thursday at par to yield 8.90%, a syndicate source said.
The deal was increased from $50 million.
Price talk had been revised to 8¾%-9% from 8¾%-9¼%.
Friedman Billings Ramsey, Stifel Nicholas, Flagstone Securities and JMP Securities ran the books on the public offering.
Proceeds will be used primarily to fund the origination of mortgage loans and for general corporate purposes.
The Kansas City, Mo.-based company is a self-advised specialty finance company that acquires single-family residential subprime mortgage loans and purchases mortgage securities in the secondary market.
| Issuer: | NovaStar Financial Inc.
|
| Amount: | $65 million (from $50 million)
|
| Maturity: | Perpetual
|
| Security description: | Series C cumulative redeemable preferred stock
|
| Bookrunners: | Friedman Billings Ramsey, Stifel Nicholas, Flagstone Securities, JMP Securities
|
| Coupon: | 8.90%
|
| Price: | Par
|
| Yield: | 8.90%
|
| Liquidation: | $25.00
|
| Shares: | 2,600,000
|
| Call features: | Callable at par after Jan. 15, 2009
|
| Trade date: | Jan. 15
|
| Settlement date: | Jan. 22
|
| Ratings: | Non-rated
|
| Symbol: | NFI Pfd C (New York Stock Exchange)
|
| Price talk: | 8¾%-9% (revised from 8¾%-9¼%)
|
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