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

Rhea-AI Summary

Flagstar Bancorp, Inc. (NYSE: FBC) announced a public secondary offering of 9,112,705 shares of common stock, all sold by MP Thrift Investments L.P. The company will not sell any shares or receive proceeds from this offering, and upon completion, MP Thrift will no longer hold any shares. Morgan Stanley is the underwriter for this offering. The registration statement for this offering is available on the SEC's website, and potential investors are encouraged to read the prospectus for detailed information.

Positive

• The offering of 9,112,705 shares could provide liquidity to the market.

Negative

• MP Thrift will no longer hold shares, potentially signaling a lack of confidence.
• No proceeds will be received by Flagstar, limiting its capital for growth.

TROY, Mich., Nov. 5, 2020 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) (the "Company") today announced the commencement of a registered public secondary offering of 9,112,705 shares of the Company's common stock.  All of the shares sold in the offering will be sold by MP Thrift Investments L.P. ("MP Thrift").  MP Thrift is selling all of their remaining stake in the Company as a result of this offering. 

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, MP Thrift will no longer beneficially own shares of the Company's 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 $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 total number of shares being offered in the Flagstar Bancorp secondary offering?

Flagstar Bancorp is offering a total of 9,112,705 shares of common stock.

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

The shares are being sold by MP Thrift Investments L.P.

Will Flagstar Bancorp receive any proceeds from the secondary offering?

No, Flagstar Bancorp will not receive any proceeds from this offering.

What is the role of Morgan Stanley in Flagstar Bancorp's offering?

Morgan Stanley is acting as the underwriter for the proposed secondary offering.

What will happen to MP Thrift's stake in Flagstar Bancorp after the offering?

MP Thrift will no longer beneficially own shares of Flagstar Bancorp after the offering.