HICKSVILLE, N.Y. - New York Community Bancorp , Inc. (NYSE: NYSE:NYCB), parent company of Flagstar Bank, N.A., has announced the completion of a significant equity investment totaling approximately $1.05 billion. The investment comes from a group of strategic investors including Liberty Strategic Capital, funds managed by Hudson (NYSE:HUD) Bay Capital Management, funds managed by Reverence Capital Partners, and other investors. This capital infusion is expected to strengthen NYCB's balance sheet and liquidity position.
The company has appointed four new directors to its Board: Former Treasury Secretary Steven Mnuchin, former Comptroller of the Currency Joseph Otting, Milton Berlinski of Reverence Capital, and Allen Puwalski, recommended by Hudson Bay. The Board now consists of ten members. These appointments follow the closing of the investment transactions.
The capital raise involved the creation and issuance of new equity securities, including two new series of preferred stock (Series B and Series C) and a new series of preferred stock (Series D) issuable upon the exercise of certain warrants. The transactions also necessitate shareholder approval to increase the number of authorized shares of common stock to comply with NYSE rules.
Joseph Otting, the incoming CEO of NYCB, received employment inducement awards on March 6, 2024, consisting of an option to acquire 15,000,000 shares of the company's common stock.
NYCB, with $113.9 billion in assets as of December 31, 2023, operates Flagstar Bank, which has 420 branches and is a significant player in multi-family lending, mortgage origination and servicing, and warehouse lending. The company is preparing to submit several amendments to its Certificate of Incorporation to its stockholders for approval.
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