By Stephanie N. Rotondo
Portland, Ore., March 29 - The U.S. Treasury Department priced a $52.62 million offering of WSFS Financial Corp.'s series A fixed-rate cumulative perpetual preferreds via a modified Dutch auction on Wednesday.
The 52,625 preferred shares were originally purchased as part of the capital purchase program of the TARP program.
The shares priced at $915.11, resulting in total proceeds of $48.16 million, the agency said in a press release issued Thursday. Liquidation preference is $1,000 per share.
WSFS Financial will not receive any proceeds from the sale. The initial dividend is set at 5% until Feb. 14, 2014. After that, the rate increases to 9% unless the bank calls the securities.
Dividends will only be paid upon regulatory approval. However, the preferred shares can be called at any time at par plus accrued and unpaid dividends.
Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP are the auction agents and joint bookrunners. Drexel Hamilton, SL Hare Capital and TBC Securities are the co-managers.
Houlihan Lokey Capital, Inc. is serving as financial adviser to Treasury.
Settlement is expected April 3. At settlement, the winning bidders will pay the clearing price plus accrued and unpaid dividends from and including Feb. 15.
WSFS Financial is a Wilmington, Del.-based bank holding company.
| Issuer: | WSFS Financial Corp.
|
| Securities: | Series A fixed-rate cumulative preferred stock
|
| Amount: | $52.62 million, or 52,625 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch, Sandler O'Neill + Partners, LP
|
| Co-managers: | Drexel Hamilton, SL Hare Capital, TBC Securities
|
| Dividend: | 5% through Feb. 15, 2014, then 9% unless called
|
| Price: | $915.11 per share
|
| Liquidation preference: | $1,000 per share
|
| Proceeds: | $48.16 million
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
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