Merchants Bancorp Finally Prices Perpetual Preferred–UPDATED TICKER

The OTC Grey market ticker of MRBPP has been announced for this new issue.

Indiana banking company Merchants Bancorp (NASDAQ:MBIN) has finally priced the new perpetual preferred issue that they announced last week.

The issue will be fixed-to-floating rate with an initial coupon of 7%. The issue will move to floating rate on 4/1/2024 and will trade with a coupon which will reset quarterly at 3 month Libor plus a spread of 4.605%.

The company is offering 2 million shares plus 300,000 for over allotments.

The issue is non cumulative, since it is a banking company. Dividends should be qualified for tax treatment.

The issue is rated BBB+ by Egan-Jones (for what it is worth) and unrated by the major rating agencies.

The final pricing term sheet can be seen here.

The company also previously released a slide show which can be seen here.

The issue should trade with a permanent ticker of MBINP when it finally trades on the NASDAQ–no OTC ticker is yet announced.

Thanks to Nomad for seeing this one finally priced.

16 thoughts on “Merchants Bancorp Finally Prices Perpetual Preferred–UPDATED TICKER”

  1. Those underwriters took me back behind building and worked me over good getting my allotment here today. I am black and blue from the beat down, but got my allotment all in at $25.50.

    1. I passed on MBRPP – so far. I did finally join other EBGEF investors. I got sick and tired of Fidelity being in my way. Our IRA’s are rollovers from Fidelity arrived at Schwab today so now I could add this Canadian issue to my investment mix. No Fidelity nonsense about floating rate issues – bye, bye Fidelity. Thanks for posting about EBGEF. This is a nice holding to have, thanks for finding it.

      1. Steve, Fido and few others lazily rely on feeding garbage into the computer to get garbage out to make the ruling. They will let you buy any crap served up from CBL or Wheeler to lose ones money, but heaven forbid you try to buy an adjustable near 7% that is investment grade and pays in USD.
        The MBRRP is certainly not deemed widowfied by me. Just a little gamble on rates staying low for a while. I have hook in hand to yank it from the stage if it is getting jeers from the crowd.

  2. This question shows that I’m a balance sheet newbie, but where is the DEBT listed in the financial highlights presentation? I always try to figure out what debt is ahead of me as a potential preferred shareholder The issue looks interesting to me, so other than the terms, what do you all think?

    1. Hey Gumfighter, if you’re familiar with the Seeking Alpha website you can do a look up of MBIN, then click on the Key Data tab and scroll down to the Balance Sheet which will give you the Total Debt as well as a breakdown between Short Term and Long Term debt among other useful data.

      I’m sure there are other websites providing this information, but I’ve found SA fairly easy to navigate. Good luck.

        1. Per SA,

          Total Debt: $195.48M
          Short Term Debt: $18.74M
          Long-Term Debt: $2.42M

          Shouldn’t the summation of short and long-term debt equal total debt?

    2. Its a bank, Gumfighter, a million things could go wrong to be blindsided from do to the obvious leverage banks incur. Their return on equity has been high, and they have been doing a lot of acquisitions. So I doubt their earnings are the cleanest bank wise. In fact they implied this money could be used for acquisitions. Its a tiny bank gobbling up tinier banks. Still has less than 4 billion in assets.
      If loans go bad they have to take hits to capital and this is where this issue resides. I gonna take a little stab at it myself and buy.

  3. My contact at Sandler O’Neill confirmed that this preferred IPO will not trade Grey Sheets and the permanent NASDAQ symbol will be MBINP. He also said they have a couple bids this AM from other firms and they would try to get it trading sometime for retail later next week. Hope that helps, Nomad

      1. Thanks Tim, I called Sandler and my buddy said “we are not aware of this ticker until you called”… GREAT JOB by you Tim!

      1. I complained about the underwriting fleecing I got at $25.50 but I glad I bought an oversized portion as I think this one will trade strong.

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