Cadence Bancorporation proposes secondary offering of 12,099,757 class A common stock shares.
M2 EQUITYBITES-September 12, 2018-Cadence Bancorporation proposes secondary offering of 12,099,757 class A common stock shares
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Cadence Bancorporation (NYSE:CADE) stated on Wednesday that it started a registered public secondary offering of 12,099,757 shares of class A common stock, or about 14.5% of its outstanding stock.
These shares will be sold by some selling stockholders named in the preliminary prospectus supplement filed in connection with the offering. The stockholder received the shares of class A common stock being sold in an in-kind distribution of 100% of the shares of class A common stock held by Cadence Bancorp LLC to its unit holders on 10 September 2018 (other than a deminimis number of shares of class A common stock representing total fractional shares in lieu of which unit holders are to receive cash).
In addition to these selling stockholders, some unit holders of Cadence Bancorp LLC also received 9,575,185 shares of class A common stock in the distribution that they elected not to sell in the offering, representing about 11.5% of the company's outstanding class A common stock. They will be restricted from transferring such received shares without the company's consent, for a period of 45 days after the date of the final prospectus supplement filed for the offering.
Finally, of those above mentioned 9,575,185 shares, 4,523,970 shares are held by affiliates such as the board of directors and management of the company, representing 5.4% of its outstanding class A common stock.
The company is not selling any shares, neither will it receive any proceeds from the proposed offering. This offering that will close on or about 14 September 2018 and is subject to customary closing conditions, will not change the number of shares of class A common stock that are currently outstanding. Morgan Stanley is acting as the underwriter in the offering.
A regional bank holding company, Cadence has assets worth USD11.3bn and is headquartered in Houston, Texas, USA. Through its affiliates, it operates 65 locations and provides a full range of innovative banking and financial solutions. Cadence Bank NA, Cadence Insurance and Linscomb & Williams are direct or indirect subsidiaries of the company.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Sep 12, 2018|
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