By Rebecca Melvin
New York, Dec. 19 – WMI Holdings Corp. priced $600 million of series B mandatory convertible preferred stock at par of $1,000 per share with a 3% dividend and a 20% initial conversion price on Friday, according to a pricing sheet.
Citigroup Global Markets Inc. and KKR Capital Markets LLC are joint bookrunning managers of the offering that is set to close Jan. 5.
Proceeds will be used to explore and fund acquisitions, including attorney fees and expenses, accounting expenses, due diligence and financial adviser fees and expenses.
On the date that WMI closes an acquisition, an amount of the preferreds equal to the amount of proceeds from the offering using in the acquisition will mandatorily convert into common stock at a price equal to the lower of $2.25 and the daily volume-weighted average price on the 20 trading days preceding the announcement of the acquisition, subject to a floor of $1.75.
WMI’s common stock is listed on the OTCQB under the symbol “WMIH.”
Seattle-based WMI Holdings is a reinsurance business operating through its subsidiary WM Mortgage Reinsurance Co.
| Issuer: | WMI Holdings Corp.
|
| Issue: | Series B mandatory convertible preferred stock
|
| Amount: | $600 million
|
| Maturity: | Jan. 5, 2018
|
| Bookrunners: | Citigroup Global Markets Inc., KKR Capital Markets LLC
|
| Dividend: | 3%
|
| Price: | Par, $1,000
|
| Liquidation preference: | $1,000
|
| Yield: | 3%
|
| Premium: | 20%
|
| Initial conversion price: | $2.25
|
| Takeover protection: | Yes
|
| Pricing date: | Dec. 19
|
| Settlement date: | Jan. 5
|
| Distribution: | Rule 144A
|
| Stock symbol: | OTCQB: WMIH
|
| Stock price: | $1.88, as of close Dec. 19
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
