Piper Sandler on New York Community Bancorp (NYCB): 'capital raise will alleviate investor and depositor concerns'
Piper Sandler analyst Mark Fitzgibbon reiterated a Neutral rating and $5.00 price target on New York Community Bancorp (NYSE: NYCB)
The analyst comments "We believe the capital raise will alleviate investor and depositor concerns. The group leading the capital raise included: Liberty Strategic Capital ($450 million), Hudson Bay Capital ($250 million) and Reverence Capital Partners ($200 million). Other investors include Citadel Global Equities, other institutional investors and certain members of the company’s management. NYCB will issue both shares of common stock at $2.00 per share and convertible preferred stock with a conversion price of $2.00, all for an aggregate amount of $1.05 billion. In addition, these investors will receive 60% warrant coverage to purchase non-voting, common-equivalent stock with an exercise price of $2.50 per share, a 25% premium to the price paid on common stock. The transaction is expected to close “on or around” Monday, March 11."
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Shares of New York Community Bancorp closed at $3.46 yesterday.