New York Community Bancorp (NYSE: NYCB) stock rose more than 7% on Wednesday after the regional bank secured an equity investment of over $1 billion from investors including Liberty Strategic Capital, Hudson Bay, and Reverence Capital.
New York Community Bancorp (NYCB) recently closed a significant equity investment deal exceeding $1 billion, drawing support from a consortium of investors, including Liberty Strategic Capital, Hudson Bay, and Reverence Capital.
Liberty Strategic Capital plans to inject $450 million, followed by Hudson Bay with a commitment of $250 million, and Reverence Capital will contribute $200 million.
Under the terms of the agreement, NYCB will issue shares of its common stock to the incoming investors at $2 per share, alongside a series of convertible preferred stocks totaling $1.05 billion in investment. The transaction will conclude on March 11.
In addition, NYCB has announced the appointment of four new directors to its board. Notable additions include former Treasury Secretary Steven Mnuchin, ex-Comptroller of the Currency Joseph Otting, Allen Puwalski from Hudson Bay, and Milton Berlinski from Reverence Capital.
Mnuchin said,
“In evaluating this investment, we were mindful of the Bank’s credit risk profile. With the over $1 billion of capital invested in the Bank, we believe we now have sufficient capital should reserves need to be increased in the future to be consistent with or above the coverage ratio of NYCB’s large bank peers.”
The company also named Joseph Otting as its new CEO, succeeding Alessandro (Sandro) DiNello, who took the reins just last week following the departure of former CEO Thomas Cangemi. DiNello will now serve as the non-executive chairman.
New York Community Bancorp (NYSE: NYCB) Stock Movement
NYCB stock jumped 7.45% to close at $3.46 on Wednesday. The traders had exchanged hands with 141,665,007 (141.66 million) shares compared to the average daily trading volume of 29.77 million.
