Merchants Bancorp Enters Underwriting Agreement for Depositary Share Offering

On November 18, 2024, Merchants Bancorp (NASDAQ: MBIN) entered into an Underwriting Agreement with Morgan Stanley & Co. LLC, UBS Securities LLC, Piper Sandler & Co., and Raymond James & Associates, Inc. for the issuance of Depositary Shares. These shares represent a 1/40th ownership interest in Merchants’ 7.625% Fixed Rate Series E Non-Cumulative Perpetual Preferred Stock. The agreement involves the sale of 9,200,000 Depositary Shares, with each Underwriter committed to purchasing a portion subject to specified terms and conditions.

The Underwriting Agreement incorporates various representations, warranties, and agreements by Merchants, along with conditions to closing, indemnification rights, obligations of the parties, and termination provisions. The offering, made pursuant to a Registration Statement on Form S-3, is projected to conclude on November 25, 2024, subject to customary closing conditions.

In a related event on November 18, 2024, Merchants released a press statement disclosing the pricing of the underwritten public offering of Depositary Shares. The offering represents a significant step for the company in capitalizing on investment opportunities and strengthening its financial position.

Merchants Bancorp anticipates using the net proceeds from the offering, expected to amount substantially, for redeeming the Series B preferred stock and supporting the general corporate needs of the company, including bolstering the balance sheet growth of its subsidiary, Merchants Bank of Indiana.

The offering is orchestrated with Morgan Stanley & Co. LLC, UBS Securities LLC, Piper Sandler & Co., and Raymond James & Associates, Inc. serving as joint bookrunning managers for the transaction. The Company aims to finalize the offering around November 25, 2024, subject to the completion of customary conditions as agreed upon.

Furthermore, a shelf registration statement, including a prospectus, concerning the offering was previously filed with the Securities and Exchange Commission (SEC) and deemed effective on August 17, 2022. The underwritten public offering is expected to be conducted through a prospectus supplement and accompanying prospectus, accessible via authorized channels.

Regarding forward-looking information, Merchants Bancorp highlighted in its statements the potential dividends expected on the Series E preferred stock and the strategic utilization of proceeds post-offering. The Company emphasized that any forward-looking statements are subjective and subject to inherent uncertainties beyond its control, with a commitment to regular updates to reflect changes in assumptions or unexpected events as needed.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Merchants Bancorp’s 8K filing here.

Merchants Bancorp Company Profile

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family and healthcare facilities.