Advanta prices offering of Convertible Preferred Equity Securities.HORSHAM, Pa.--(BUSINESS WIRE)--Aug. 16, 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) ) Wednesday announced that it has priced a public offering of 2.5 million depositary shares at $37 per share. Each depositary share will represent a one-hundredth interest in a share of a new series of 6-3/4% Convertible Class B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . 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 (SAILS)(SM), will pay cumulative dividends. The annual dividend with respect to each depositary share will be $2.4975, payable quarterly in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind . Each depositary share will mandatorily convert into one share of Advanta Class B Common Stock on Sept. 15, 1999, unless previously redeemed by the company or converted at the option of the holder. Beginning Sept. 15, 1998, the company may redeem each depositary share with the number of shares of Class B Common Stock equal to the sum of $37.6244 (declining periodically after Dec. 14, 1998 to $37 on Aug. 15, 1999) and all accrued and unpaid dividends, divided by the then current market price of the Class B Common Stock, but in no event less than 0.8197 of a share. At any time before Sept. 15, 1999, unless previously redeemed, each depositary share will be convertible at the option of the holder into 0.8197 of a share of Advanta Class B Common Stock (equivalent to a conversion price of $45.14 per share of Class B Common Stock), subject to adjustment in certain events. The depositary shares have been conditionally approved for listing on the NASDAQ National Market under the symbol "ADVNZ," subject to notice of issuance. Proceeds from the offering will be used to provide working capital to support future growth and for general corporate purposes. CS First Boston First Boston Corporation was a New York-based investment bank, founded in 1932 and acquired by Credit Suisse in 1988, when it became 'CS First Boston'. Globally referred to as Credit Suisse First Boston after 1996, the First Boston part of the name was phased out in 2006. is 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 Inc., Merrill Lynch & Co. and William Blair & Co. as co-managers. An option has been granted to the underwriters to purchase an additional 375,000 depositary shares from the company to cover over-allotments. "This offering provides us with additional strength to support the growth in all our current businesses and to continue to expand in new markets and delivery systems," commented Richard Greenawalt, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . With over four million customers, $10.6 billion in managed assets and more than 2,000 employees as of June 30, 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, VP/Investor Relations, 215/784-5335 |
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