Walter Investment Management Corp., prior to the market opening this morning, priced a 6 million share public offering of its common stock at $42 per share, $0.65 below its previous day’s close.
However, investors quickly jumped on board and as of 11:30 it was trading at $42.97 per share, and even at one point topped $43. On Oct. 4, Tampa-based Walter hit its 52-week high of $44.12 per share.
Proceeds from the offering are expected to be $240 million. If a 900,000-share overallotment option is exercised, they could go as high as $276 million.
At least $95 million of the proceeds from the offering will be used to fund
The company also priced a $265 million debt offering at 4.5%. The convertible senior subordinated notes are due in 2019 and interest payments will be made each May 1 and Nov. 1.
The two offerings are not contingent on the completion of the other.
Both offering have the same joint bookrunning managers: Credit Suisse, Morgan Stanley, B of A Merrill Lynch and Barclays.
