TROY, Mich., Oct. 10, 2012 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) ("Flagstar" or the "Company") announced that effective at 4:15 p.m. EDT today, shares of its common stock will be subject to a reverse split on a one-for-ten basis. Flagstar shares are expected to trade on a post-split basis when the markets open tomorrow on Thursday, October 11, 2012, will continue to trade on the New York Stock Exchange under the symbol FBC, and have been assigned a new CUSIP number - 337930 705.
Flagstar stockholders will receive one new share of Flagstar common stock for every ten shares held at the effective time. The reverse stock split will reduce the number of shares of outstanding common stock from approximately 558.3 million to approximately 55.8 million. The number of authorized shares of common stock will be reduced from 700 million to 70 million. Proportional adjustments will be made to Flagstar's outstanding options, warrants and other securities entitling their holders to purchase or receive shares of Flagstar common stock. In lieu of fractional shares, stockholders will receive cash. Cash payments for fractional shares will be determined on the basis of the stock's closing price on October 9, 2012, adjusted for the reverse stock split. The reverse stock split will not negatively affect any of the rights that accrue to holders of Flagstar outstanding options, warrants and other securities entitling their holders to purchase or receive shares of common stock.
Stockholders with certificated shares are required to exchange their stock certificates for new stock certificates representing the appropriate number of shares of common stock resulting from the reverse stock split. Flagstar's transfer agent, Registrar and Transfer Company, is the exchange agent for the reverse stock split and will distribute a letter of transmittal to shareholders with instructions for surrendering old stock certificates.