This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Preferred Play on N.Y. Community Bancorp

New York Community's challenge will be to continue improving its net-interest spread over the coming quarters as well as its earnings. The company consistently posted returns on average assets exceeding 1% through 2005, and returns on equity approaching 20% in 2002 and 2003.

Exchange details

At New York Community Bancorp, each BONUS consists of one trust-preferred share of New York Community Capital Trust V and a warrant to purchase about 2.5 common shares for $50, or about $20 each, at any time before May 7, 2051.

The company has the option of redeeming the warrants if common shares trade at 125% of the conversion price for 20 of the previous 20 trading days.

The BONUS units trade on the New York Stock Exchange under the symbol "NYB.PRU" and have a par value of $50 and a 6% coupon.

New York Community's common shares peaked at $35.57 on March 1, 2004, according to Bloomberg data, but investors holding the BONUS shares weren't allowed to exercise the warrants until Nov. 4, 2007, after which the stock peaked at $22 on Sept. 19, 2008.

The exchange offer expires Aug. 25, and the exchange ratio will be set Aug. 21. The ratio will be 2.4953 common shares plus $10 divided by the daily volume-weighted average price of the common shares for the five trading days ending Aug. 21.

Based on an average closing price of $11.31 for the five trading sessions through Thursday, the exchange ratio would be 0.8842 plus 2.4953 shares, or 3.3777 common shares for each BONUS unit.
4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BRK.A $203,070.05 1.30%
C $52.93 1.20%
GS $187.13 1.50%
AAPL $111.32 1.50%
FB $88.59 1.60%

Markets

Chart of I:DJI
DOW 16,394.44 +108.93 0.67%
S&P 500 1,958.73 +18.22 0.94%
NASDAQ 4,746.6860 +49.15 1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs