Merchants Bancorp Closes Depositary Share Offering

Rhea-AI Summary

Merchants Bancorp (NASDAQ: MBIN), headquartered in Carmel, Indiana, announced the closure of a public offering of 5.2 million depositary shares, each representing a 1/40th interest in its 8.25% Series D Non-Cumulative Perpetual Preferred Stock. The offering generated approximately $125.3 million in net proceeds after expenses and underwriting fees. The underwriters also hold a 30-day option to purchase an additional 780,000 shares. Merchants Bancorp is recognized as a top-performing U.S. public bank, with $11.1 billion in assets and $8.3 billion in deposits as of June 30, 2022.

Positive

• Public offering raised approximately $125.3 million in net proceeds.
• The underwriters have the option to purchase an additional 780,000 shares, which could enhance liquidity.

Negative

• None.

CARMEL, Ind., Sept. 27, 2022 /PRNewswire/ -- Merchants Bancorp ("Merchants") (NASDAQ: MBIN), parent company of Merchants Bank of Indiana, today announced the closing of its previously announced underwritten public offering of 5,200,000 depositary shares, each representing a 1/40th interest in a share of its 8.25% Fixed Rate Reset Series D Non-Cumulative Perpetual Preferred Stock (the "Series D preferred stock"), with a liquidation preference of $25.00 per depositary share. In addition, the underwriters were granted, but have not yet exercised, a 30-day option to purchase 780,000 additional depositary shares of the Series D preferred stock, solely to cover over-allotments, if any. As a result of the public offering, Merchants received proceeds of approximately $125.3 million, net of estimated expenses and underwriting discounts and commissions.

Piper Sandler & Co., Morgan Stanley & Co. LLC and UBS Securities LLC acted as joint book runners. 

A shelf registration statement, including a prospectus, with respect to the offering was previously filed by Merchants with the Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on August 17, 2022. A prospectus supplement relating to the offering has been filed with the SEC. The offering has been made by means of a prospectus supplement and accompanying prospectus. Copies of the prospectus supplement and the accompanying prospectus relating to these securities may be obtained free of charge by visiting the SEC's website at www.sec.gov, or may be obtained from Piper Sandler & Co., 1251 Avenue of the Americas, 6^th Floor, New York, NY 10020, Attn: Syndicate Operations, Telephone: 1-866-805-4128, Morgan Stanley & Co. LLC, 180 Varick Street, Second Floor, New York, NY 10014, Attn: Prospectus Delivery, Telephone: 1-866-718-1649, or UBS Securities LLC, 1285 Avenue of the Americas, New York, NY 10019, Attn: Prospectus Department, Telephone number: 1-888-827-7275.

About Merchants Bancorp

Ranked as a top performing U.S. public bank by S&P Global Market Intelligence, Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business, including multi-family housing and healthcare facility financing and servicing; mortgage warehouse financing; retail and correspondent residential mortgage banking; agricultural lending; and traditional community banking. Merchants Bancorp, with $11.1 billion in assets and $8.3 billion in deposits as of June 30, 2022, conducts its business primarily through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Merchants Asset Management, LLC, Merchants Capital Investments, LLC, Farmers-Merchants Bank of Illinois, Merchants Capital Servicing, LLC, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants' Investor Relations page at investors.merchantsbancorp.com.

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SOURCE Merchants Bancorp

FAQ

What was the purpose of Merchants Bancorp's recent public offering on September 27, 2022?

Merchants Bancorp's public offering aimed to raise funds by selling 5.2 million depositary shares of its 8.25% Series D Non-Cumulative Perpetual Preferred Stock.

How much money did Merchants Bancorp raise from the public offering?

Merchants Bancorp raised approximately $125.3 million in net proceeds from the public offering.

What is the stock symbol for Merchants Bancorp?

The stock symbol for Merchants Bancorp is MBIN.

What type of preferred stock did Merchants Bancorp offer in its public offering?

Merchants Bancorp offered 8.25% Fixed Rate Reset Series D Non-Cumulative Perpetual Preferred Stock.

Who acted as joint book runners for Merchants Bancorp's public offering?

Piper Sandler, Morgan Stanley, and UBS Securities acted as joint book runners for the public offering.