Proceeds from 6% preferreds used to support Bank of Internet's growth
By Devika Patel
Knoxville, Tenn., Nov. 2 - BofI Holding, Inc. will offer $7 million of its 6% series B non-cumulative perpetual convertible preferred stock, according to a prospectus supplement filed Wednesday with the Securities and Exchange Commission.
Each of the 7,000 preferreds has a face value of $1,000 and is convertible into 61.92 shares of the company's common stock. This is equal to an initial conversion price of $16.15, which is a 10.92% premium over the company's $14.56 closing share price on Nov. 1.
The company may force the conversion of the preferreds under certain circumstances.
The preferreds will be callable after three years. The redemption price is 108% of par in year three, 105% of par in year four and 103% of par from year five onward.
Proceeds will be used to support Bank of Internet USA's growth, particularly to originate more single-family and multifamily first-lien mortgages and increase deposits, strengthen the bank's regulatory capital ratios, for general working capital purposes and investments in short-term interest-bearing investment grade securities.
San Diego-based BofI is the holding company for Bank of Internet USA, a savings bank that operates primarily through the internet.
| Issuer: | BofI Holding, Inc.
|
| Issue: | Series B non-cumulative perpetual convertible preferred stock
|
| Amount: | $7 million
|
| Preferreds: | 7,000
|
| Price: | $1,000
|
| Dividends: | 6%
|
| Conversion price: | $16.15
|
| Conversion ratio: | 61.92
|
| Conversion premium: | 10.92%
|
| Call: | At 108 in year three, 105 in year four and 103 from year five onward
|
| Warrants: | No
|
| Pricing date: | Nov. 2
|
| Stock symbol: | Nasdaq: BOFI
|
| Stock price: | $14.75 at close Nov. 2
|
| Market capitalization: | $154.51 million
|
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