Merchants Bancorp ("Merchants") has recently announced the pricing of an underwritten public offering of 9,200,000 depositary shares, each representing a 1/40th ownership interest in a share of its 7.625% fixed rate series e non-cumulative perpetual preferred stock. This stock has a liquidation preference of $25.00 per depositary share.
The dividends on the series e preferred stock will be payable from the date of issuance at a rate of 7.625% per annum, payable quarterly in arrears, starting from January 1, 2025. The net proceeds from the offering are expected to be used to redeem Merchants’ series b preferred stock and for general corporate purposes, including to support balance sheet growth of Merchants Bank.
The company expects to close the offering, subject to customary conditions, on or about November 25, 2024. The offering has been made through a shelf registration statement previously filed by Merchants with the Securities and Exchange Commission (SEC) and was declared effective by the SEC on August 17, 2022.
As of September 30, 2024, Merchants had $18.7 billion in assets and $12.9 billion in deposits.
The joint bookrunning managers for the offering are Morgan Stanley & Co. LLC, UBS Securities LLC, Piper Sandler & Co., and Raymond James & Associates, Inc.
Merchants Bancorp is a diversified bank holding company operating multiple business segments, including multi-family mortgage banking, mortgage warehouse financing, and banking services. Today the company's shares have moved -1.3% to a price of $38.48. For more information, read the company's full 8-K submission here.
