IndyMac Bancorp to sell $150 mln trust pfd units via Morgan Stanley

By Paul A. Harris

St. Louis, Mo., Nov. 6 - IndyMac Bancorp Inc. announced Tuesday that it proposes to raise approximately $150 million through an offering of warrants and income redeemable equity securities (WIRES) due 2031 (B+).

Pam Marsh, of IndyMac investors & media department, told Prospect News that the underwriter on the deal is Morgan Stanley Dean Witter.

"We're just launching this transaction," Marsh said, declining to comment on any further specifics of the deal.

The securities will be offered as units consisting of a trust preferred security and a warrant to purchase IndyMac Bancorp common stock, according to a Tuesday press release, which added that the units will be separable after initial issuance and may subsequently be recombined at the option of the holder.

IndyMac expects to issue three million units with a face value of $50 each. There is a 15% greenshoe. Distributions will be paid quarterly on the trust preferred component.

Each warrant will be convertible into a fixed number of shares of IndyMac common stock. The proceeds of the offering will be used for general corporate purposes, according to the release.

IndyMac Bancorp, the holding company for IndyMac Bank, is headquartered in Pasadena, Calif.

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