East West Bancorp, Inc. (Nasdaq:EWBC), parent company of East West Bank,
one of the nation’s premier community banks,
today announced that it has priced a public offering of 175,000 shares,
or $175,000,000 aggregate liquidation preference, of Non-Cumulative
Perpetual Convertible Preferred Stock (the "Preferred
Stock”). The transaction was increased from
its initial announced size of 150,000 shares, or $150,000,000 aggregate
liquidation preference, of Preferred Stock. The Company also granted the
underwriter an option to purchase up to an additional 25,000 shares of
Preferred Stock, or $25,000,000 aggregate liquidation preference, to the
extent the underwriter sells more than 175,000 shares of Preferred Stock
in the offering.
The proceeds from this offering will be used for general corporate
purposes, including to increase the Company’s
liquidity and capital and reduce its borrowings.
Dividends will be payable on the Preferred Stock on a non-cumulative
basis quarterly in arrears on each February 1, May 1, August 1 and
November 1, commencing on August 1, 2008, at a rate of 8.00% per year on
the liquidation preference of $1,000 per share.
The holders of the Preferred Stock will have the right at any time to
convert each share of Preferred Stock into 64.9942 shares of the Company’s
common stock, which represents an initial conversion price of
approximately $15.39 per share of common stock or a 22.50% conversion
premium based on the closing price of the Company’s
common stock on the
Nasdaq Global Select Market on April 23, 2008 of
$12.56 per share. The conversion rate, and thus the conversion price,
will be subject to adjustment under certain circumstances. In addition,
the holders of the Preferred Stock will have the right under certain
circumstances to convert each share of Preferred Stock into the Company’s
common stock at an increased conversion rate. On or after May 1, 2013,
the Company will have the right under certain circumstances to cause the
Preferred Stock to be converted into shares of the Company’s
common stock at the then applicable conversion rate.
Lehman Brothers Inc. is serving as the sole book-running manager and
underwriter of this offering.
The offering is made under the Company’s shelf
registration statement filed with the Securities and Exchange Commission
on April 21, 2008. This press release does not constitute an offer to
sell or the solicitation of an offer to buy securities and does not
constitute an offer, solicitation or sale in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
When available, copies of the prospectus supplement and accompanying
prospectus relating to the offering can be obtained from Lehman Brothers
Inc., c/o Broadridge, Integrated Distribution Services, 1155 Long Island
Avenue, Edgewood, NY 11717, telephone: 1-888-603-5847 fax: 631-254-7140,
or email: qiana.smith@broadridge.com.
About East West Bank
East West Bancorp is a publicly owned company, with $11.8 billion in
assets, whose stock is traded on the Nasdaq Global Select Market under
the symbol "EWBC”.
The company’s wholly owned subsidiary, East
West Bank, is the second largest independent commercial bank
headquartered in Southern California with 72 branch locations. East West
Bank serves the community with 70 branch locations across Southern and
Northern California and a branch location in Houston, Texas. East West
Bank has three international locations in Greater China, including a
full-service branch in Hong Kong and representative offices in Beijing
and Shanghai. For more information on East West Bancorp, visit the
company’s website at www.eastwestbank.com.
Forward-Looking Statements This release may contain forward-looking statements, which are
included in accordance with the "safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 and
accordingly, the cautionary statements contained in East West Bancorp’s
Annual Report on Form 10-K for the year ended Dec. 31, 2007 (See Item I
-- Business, and Item 7 -- Management’s
Discussion and Analysis of Consolidated Financial Condition and Results
of Operations), and other filings with the Securities and Exchange
Commission are incorporated herein by reference. These factors include,
but are not limited to: the effect of interest rate and currency
exchange fluctuations; competition in the financial services market for
both deposits and loans; EWBC’s ability to
efficiently incorporate acquisitions into its operations; the ability of
EWBC and its subsidiaries to increase its customer base; the effect of
regulatory and legislative action, including California tax legislation
and an announcement by the state’s Franchise
Tax Board regarding the taxation of Registered Investment Companies; and
regional and general economic conditions. Actual results and
performance in future periods may be materially different from any
future results or performance suggested by the forward-looking
statements in this release. Such forward-looking statements speak only
as of the date of this release. East West expressly disclaims any
obligation to update or revise any forward-looking statements found
herein to reflect any changes in the Bank’s
expectations of results or any change in event.
