Advanta announces offering of convertible preferred equity securities.HORSHAM, Pa.--(BUSINESS WIRE)--Aug. 1, 1995--Advanta Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADVNB;ADVNA ADVNA Advanta Corporation (stock symbol) ) Tuesday announced plans for a public offering of 2.5 million depositary shares, each of which will represent a one-hundredth interest in a share of a new class of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , to be known as Stock Appreciation Income Linked Securities(SM) or SAILS(SM), will pay cumulative preferred Noun 1. cumulative preferred - preferred stock whose dividends if omitted accumulate until paid out cumulative preferred stock preference shares, preferred shares, preferred stock - stock whose holders are guaranteed priority in the payment of dividends but dividends and will mandatorily convert into shares of the Class B common stock not later than four years from the date of issue, unless previously redeemed or converted. The company may at its option redeem the depositary shares for a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. paid in shares of Class B common stock beginning one year prior to the mandatory conversion date. In addition, holders of the depositary shares will be entitled, at their option, to convert the depositary shares to Class B common stock at any time prior to redemption. The company anticipates that the offer price of the depositary shares will be based on the closing market price of the Class B common stock on the pricing date. The company intends to make application for the depositary shares to be approved for quotation on NASDAQ's National Market System. Proceeds from the offering will be used to provide working capital to support future growth and for general corporate purposes. CS First Boston will be the lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. of the offering with Salomon Brothers, Merrill Lynch and William Blair as co-managers. The depositary shares and the SAILS they represent will be offered and sold pursuant to, and the Class B common stock into which they are convertible will be covered by, a shelf registration statement filed by the company with the Securities and Exchange Commission which became effective in July. This communication shall not constitute an offer to sell or a solicitation of an offer to buy these securities, which will be sold only by prospectus, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. With over four million customers, $10.6 billion in managed assets, and more than 2,000 employees, Advanta is a rapidly growing consumer financial services enterprise. The company proudly serves consumers and small businesses through high quality, innovative offerings of credit cards, mortgages, leases, insurance and deposit products. CONTACT: Advanta, Horsham Janet Point, Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 215/784-5335 |
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