Indiana banking company Merchants Bancorp (NASDAQ:MBIN) has filed to sell an offering of fixed-to-floating rate preferred stock.
The issue will be typical for a banking company. Dividends will be Non-Cumulative, but qualified for preferential tax treatment. The issue will be perpetual, but will have a optional redemption period starting in 2024.
The issue will trade with a permanent ticker of MBINP when it finally starts trading on the NASDAQ. In the meantime it will likely trade on the OTC Grey Market, but the ticker has NOT as of late Friday been announced–this should occur Monday or Tuesday as pricing of the issue is determined.
This issue will be unrated by the Big 3 ratings agencies (S&P, Moodys and Fitch), but for what it is worth will be rated BBB+ by Egan-Jones.
Merchants Bancorp is a fairly small banking company with just $3.2 billion in assets. The company derives 34% of their revenue from multi-family housing, with just 37% of revenue derived from traditional banking activities.