Flagstar Bancorp, Inc. Announces Proposed Secondary Offering of Common Stock

Rhea-AI Summary

Flagstar Bancorp (NYSE: FBC) announced a secondary offering of 6,000,000 shares, representing about 10.5% of its outstanding common stock. The shares will be sold by MP Thrift Investments, with an additional option for underwriters to purchase 900,000 shares. Flagstar will not receive any proceeds from this offering. Following the transaction, MP Thrift's ownership will increase to approximately 25.6% of Flagstar's common stock. Morgan Stanley is the underwriter for this offering.

Positive

• MP Thrift's ownership increase could signify strong confidence in Flagstar's long-term prospects.

Negative

• Existing shareholders may experience dilution due to the secondary offering.
• Flagstar Bank will not benefit financially from the proceeds of this offering.

TROY, Mich., Aug. 10, 2020 /PRNewswire/ – Flagstar Bancorp, Inc. (NYSE: FBC) (the "Company") today announced the commencement of a registered public secondary offering of 6,000,000 shares of the Company's common stock, or approximately 10.5% of the Company's outstanding common stock.  All of the shares sold in the offering will be sold by MP Thrift Investments L.P. ("MP Thrift").  MP Thrift intends to grant the underwriter a 30-day option to purchase up to an additional 900,000 shares of the Company's common stock.

The Company is not selling any shares of common stock and will not receive any proceeds from the proposed offering.  Upon completion of the offering, assuming that the underwriter's option to purchase additional shares is not exercised, MP Thrift will beneficially own approximately 25.6% of the Company's outstanding common stock.

Morgan Stanley is acting as underwriter 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: Morgan Stanley at 180 Varick Street, 2^nd Floor, New York, NY 10014, 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 $27.5 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 89 retail locations in 28 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 $214 billion of loans representing slightly over 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 size of the secondary offering announced by Flagstar Bancorp on August 10, 2020?

Flagstar Bancorp announced a secondary offering of 6,000,000 shares, which is approximately 10.5% of its outstanding common stock.

Who is selling the shares in the Flagstar Bancorp secondary offering?

The shares in the offering will be sold by MP Thrift Investments L.P.

What impact does the secondary offering have on existing Flagstar shareholders?

The secondary offering may lead to dilution of existing shareholders' ownership stakes, as more shares will be available in the market.

Will Flagstar Bancorp receive proceeds from the secondary offering?

No, Flagstar Bancorp will not receive any proceeds from the proposed secondary offering.