WaMu Prices $3B of Preferred Stock

Washington Mutual Inc., Seattle, has priced a public offering of 3 million shares of 7.75% series R noncumulative perpetual convertible preferred stock with a liquidation preference of $1,000 per share.WaMu said it expects the offering to generate net proceeds of $2.9 billion, of which up to $1 billion will initially be contributed to Washington Mutual Bank, its principal subsidiary, as additional capital. Each share of the series R preferred stock will be convertible at any time, at the option of the holder, into 47.0535 shares of WaMu common stock, representing an initial conversion price of approximately $21.25 per share, WaMu said. The joint book-running managers of the offering are Lehman Brothers Inc., Morgan Stanley & Co., Credit Suisse Securities (USA) LLC, and Goldman, Sachs & Co. WaMu can be found online at http://www.wamu.com.