By Susanna Moon and Stephanie N. Rotondo
Chicago, March 12 - Astoria Financial Corp. said it priced its underwritten public offering of series C non-cumulative perpetual preferred stock for proceeds of $135 million.
The deal has a 30-day over-allotment option for $15 million more shares.
The company will sell 5.4 million depositary shares, each representing a 1/40th interest in a share of its preferreds, with a liquidation preference of $1,000 per share, at an offering price of $25.00 per depositary share, according to a press release.
Dividends will be payable quarterly at a rate of 6.5% per year.
Proceeds will be used for general corporate purposes, which may include redemption of its 9.75% junior subordinated debentures due Nov. 1, 2029, as well as investments in Astoria Federal as regulatory capital and investments at the holding company level.
Barclays, Raymond James & Associates, Inc. and RBC Capital Markets, LLC are the joint bookrunning managers.
The preferreds can be redeemed in whole or in part on or after April 15, 2018 at par plus accrued dividends, according to a prospectus filing earlier on Tuesday with the Securities and Exchange Commission. The shares can also be redeemed in whole at any time in the event of a regulatory capital treatment event.
Astoria Financial said in the filing that it planned to list the new preferreds on the New York Stock Exchange under the ticker symbol "AFPC."
Astoria Financial is a Lake Success, N.Y.-based banking institution.
| Issuer: | Astoria Financial Corp.
|
| Issue: | Series C non-cumulative perpetual preferred stock
|
| Amount: | $135 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Barclays, Raymond James & Associates, Inc. and RBC Capital Markets, LLC
|
| Co-managers: | J.P. Morgan Securities LLC, Credit Suisse (USA) Securities LLC, Sandler O'Neill + Partners, LP and Jefferies LLC
|
| Dividends: | 6.5%
|
| Price: | Par
|
| Call: | At par plus accrued dividends beginning April 15, 2018
|
| Trade date: | March 12
|
| Settlement date: | March 19
|
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