Live Oak Bancshares prices 4,000,000 preferred stock depositary shares

Published 28/07/2025, 22:42
Live Oak Bancshares prices 4,000,000 preferred stock depositary shares

WILMINGTON, N.C. - Live Oak Bancshares, Inc. (NYSE:LOB), a $1.51 billion market cap financial institution with a GOOD financial health score according to InvestingPro, announced today the pricing of an underwritten offering of 4,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock.

The depositary shares are priced with a liquidation preference of $25 per share. Dividends will be payable at a rate of 8.375% per annum, to be paid quarterly beginning on September 15, 2025, if declared by the company’s board of directors. The company has demonstrated a strong track record of dividend consistency, having maintained payments for 11 consecutive years.

Live Oak may redeem the Series A Preferred Stock on any dividend payment date on or after September 15, 2030, or following a regulatory capital treatment event, at a redemption price of $1,000 per share of Series A Preferred Stock, plus any declared and unpaid dividends.

The company intends to apply to list the depositary shares on the New York Stock Exchange under the symbol "LOB PR A" and plans to use the net proceeds for general corporate purposes, including supporting balance sheet growth at Live Oak Banking Company and enhancing the company’s capital position.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Investment Bank, and Keefe, Bruyette & Woods are serving as joint bookrunning managers for the offering, which is expected to close on or about August 4, 2025, subject to customary conditions.

The announcement was made in a press release statement issued by the financial holding company, which is the parent company of Live Oak Bank. For detailed analysis of LOB’s financial metrics and growth potential, including 8 additional exclusive ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Live Oak Bancshares reported its second-quarter 2025 financial results, surpassing analyst expectations. The company achieved earnings per share of $0.51, slightly above the forecasted $0.50. Revenue also exceeded projections, reaching $143.7 million compared to the expected $139.25 million. These results highlight the company’s strong financial performance during this period. Additionally, Raymond James maintained its Market Perform rating on Live Oak Bancshares, citing concerns about the broader economy’s health due to the bank’s focus on Small Business Administration loans. Despite these concerns, Raymond James noted improvements in loan defaults, stable past due balances, and better nonaccruals, suggesting a potential end to the small business credit cycle. These recent developments provide valuable insights for investors evaluating Live Oak Bancshares.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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