By Rebecca Melvin
New York, June 6 - Webster Financial Corp. priced $225 million of perpetual convertible preferred stock at par of $1,000 with a dividend of 8.5% and an initial conversion premium of 22.5%, according to a news release.
The 225,000 preferred shares priced at the cheap end of talk, which was for a dividend of 8% to 8.5% and an initial conversion premium of 22.5% to 27.5%.
There is an over-allotment option for $25 million, or 25,000 preferred shares, in the registered offering.
Merrill Lynch & Co. was the bookrunner, with JPMorgan and Sandler O'Neill & Partners LP acting as co-managers.
The preferred stock will be non-callable for five years and will be provisionally callable thereafter subject to a 130% price trigger.
Proceeds from the offering will be used for general corporate purposes, including increasing liquidity and providing more capital.
Waterbury, Conn.-based Webster Financial (NYSE: WBS) is the holding company for Webster Bank, NA with $17.2 billion in assets.
| Issuer: | Webster Financial Corp.
|
| Issue: | Convertible perpetual preferred shares
|
| Amount: | $225 million, or 225,000 preferred shares
|
| Greenshoe: | $25 million, or 25,000 preferred shares
|
| Maturity: | Perpetual
|
| Bookrunner: | Merrill Lynch & Co.
|
| Co-managers: | JPMorgan and Sandler O'Neill & Partners LP
|
| Dividend: | 8.5%
|
| Price: | Par, $1,000 per preferred share
|
| Conversion premium: | 22.5%
|
| Conversion ratio: | 36.8046
|
| Conversion price: | $27.17
|
| Price talk: | 8%-8.5%, up 22.5%-27.5%
|
| Call: | Non-callable for five years, forced conversion from June 15, 2013 at 130% hurdle
|
| Net share settlement: | Yes
|
| Takeover protection: | Yes, standard
|
| Dividend protection: | Yes, standard
|
| Pricing date: | June 5
|
| Settlement: | June 11
|
| Distribution: | Registered, not listed
|
| Stock symbol: | NYSE: WBS
|
| Stock price: | $22.18 at close June 5
|
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