|Several institutions have wrapped up big corporate financing transactions that will enhance their capital positions.
GMAC Financial Services, which recently converted to a bank-holding company and received $5 billion in Treasury investments under its Troubled Asset Relief Program, issued a statement last week indicating that it had completed separate private-exchange and cash-tender offers to purchase or exchange $17.5 billion in outstanding GMAC notes and $3.7 billion in notes of subsidiary Residential Capital LLC. Around 59 percent of outstanding GMAC old notes were validly tendered and accepted, while 39 percent of ResCap notes were validly tendered and accepted.
Once the offers are closed, GMAC will issue around $11.9 billion in new senior guaranteed notes and approximately $2.6 billion aggregate liquidation preference of new GMAC cumulative perpetual preferred stock.
An agreement has been reached between PHH Mortgage Corp. parent PHH Corp. and lenders in its Chesapeake Funding LLC program to extend the expiration date of the notes. The program involves two notes that will be reduced to $3.5 billion from $3.9 billion.
Flagstar Bancorp Inc. said last week that the audit committee of its board of directors has approved for the company to bypass shareholder approval to issue convertible participating voting preferred stock as part of an investment by MP Thrift Investments L.P. The waiver, made in line with the New York Stock Exchange's shareholder approval policy, was approved because the committee determined that any delay would seriously jeopardize Flagstar's financial viability.
Flagstar originally announced last month its agreement for MP, an affiliate of MatlinPatterson Global Advisers LLC, to raise its stake in the company to 70 percent through a $250 million purchase of the preferred shares.
IBERIABANK Corp. completed a public offering of 2.9 million common shares at a price of $40 per share, a press release last month said. The LaFayette, La.-based institution netted around $109 million from the offering. The offering followed a $90 million TARP investment by the Treasury earlier in December.
"Our ability to raise capital, particularly in this environment, is indicative of the confidence private and institutional investors have in our management team's proven track record of strength and stability," IBERIABANK President and Chief Executive Officer Daryl G. Byrd boasted in the statement.
Home Federal Bancorp Inc. said last month that its board of directors authorized the repurchase of up to 5 percent of its outstanding common stock. The repurchase is planned in the open market over time and works out to around 867,970 shares.
In a recent filing with the Securities and Exchange Commission, Thornburg Mortgage Inc. reported that it issued warrants for 14.2 million shares of common stock to counterparties of its amended and restated override agreement in an unregistered sale of equity securities. The warrants are exercisable at $0.01 per share and expire in December 2013.