Flagstar Bancorp, Inc. Announces Proposed Offering of Subordinated Notes

Rhea-AI Summary

Flagstar Bancorp (NYSE: FBC) announced an underwritten offering of Fixed-to-Floating Rate Subordinated Notes due 2030, aimed at enhancing Tier 2 capital. The offering will generate proceeds of up to $150 million to repurchase common stock from MP Thrift Investments, based on recent volume-weighted average prices. Raymond James and BofA Securities are the underwriters for the issuance. The company is a $29.5 billion savings and loan holding entity, known for its significant operations in commercial and consumer banking across multiple states.

Positive

• Offering of Fixed-to-Floating Rate Subordinated Notes due 2030 aims to enhance Tier 2 capital.
• Proceeds of up to $150 million will be used to repurchase common stock.

Negative

• None.

TROY, Mich., Oct. 22, 2020 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) (the "Company") today announced the commencement of an underwritten registered offering of Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Notes").  The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

The Company intends to use the net proceeds from the offering to repurchase up to $150 million of common stock held by MP Thrift Investments L.P. at a per share price that is based on the volume-weighted average prices of the Company's common stock for the three trading days up to and including the date hereof.

Raymond James and BofA Securities are acting as underwriters for the proposed offering.

The offering will be made only by means of an effective registration statement and a prospectus.  Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed offering may be obtained from: Raymond James & Associates, Inc. at 880 Carillon Parkway, St. Petersburg, Florida 33716, Attention: Syndicate Department and BofA Securities, Inc. at NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department.  Copies of the preliminary prospectus supplement and the related prospectus may also be obtained free of charge from the website of the U.S. Securities and Exchange Commission (the "SEC") at http://www.sec.gov.

The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.  Copies of the registration statement can be accessed through the SEC's website at www.sec.gov.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is a $29.5 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 160 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 87 retail locations in 29 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $227.4 billion of loans representing slightly over 1.1 million borrowers.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance.  These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature.  These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control.  Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict.  Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  For a discussion of some of the risks and important factors that could affect our future results and financial condition, see our SEC filings, including, but not limited to, the prospectus described in this press release.

Contact information

Analyst Contact:
Kenneth M. Schellenberg
(248) 312-5741
FBCInvestorRelations@flagstar.com

Media: 
Susan Bergesen
(248) 312-6237
susan.bergesen@flagstar.com

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SOURCE Flagstar Bancorp, Inc.

FAQ

What is the purpose of Flagstar Bancorp's note offering on October 22, 2020?

The note offering aims to enhance Tier 2 capital and fund the repurchase of up to $150 million of common stock.

Who are the underwriters for the proposed offering of Flagstar Bancorp's subordinated notes?

Raymond James and BofA Securities are acting as underwriters for the proposed offering.

What are the financial details of the note offering by Flagstar Bancorp?

The offering consists of Fixed-to-Floating Rate Subordinated Notes due 2030, with proceeds intended for stock repurchase up to $150 million.

What is Flagstar Bancorp's total assets as of the press release date?

Flagstar Bancorp has total assets of $29.5 billion.