that they are bidding on other banks. This was taken public for 2 reasons. For the Private Equity people to get their money back and then to buy other banks. I see alot of acquistions taking place. I think they're gonna target a bank in NJ real soon - and they're not going for small potatoes either.
IF the FDIC allows them to, they are going to have to do it soon. Loss share agreement over in 4 months. Then those nice earnings disappear. They have done well to grow organically, but you cant replace $40mm a quarter in revenue organically.
BankUnited Prices I.P.O. at $27 a Share BY BEN PROTESS AND MICHAEL J. DE LA MERCED Article Tools
E-mail Print1 Comment Recommend Share TUMBLRDIGGLINKEDINREDDITPERMALINK Twitter BankUnited is set on Friday to become the latest company to exceed expectations with its public stock offering.
The bank, a Florida-based lender, priced its shares on Thursday at $27, according to two people familiar with the deal who spoke on the condition of anonymity because it was not yet announced. Earlier this week, the bank anticipated its offering would be $23 to $25 a share. BankUnited will raise roughly $780 million, more than twice what it expected to raise when it first planned to file an initial public offering in October.
It’s yet another encouraging sign for the I.P.O market. Eight companies, including BankUnited, are expected price their shares this week.
The I.P.O. will cap a swift renaissance for BankUnited, which filed for bankruptcy only 18 months ago. It also represents a victory for the private equity investors who funneled capital into the bank, including Wilbur L. Ross Jr. and John Kanas, the former head of North Fork Bancorp on Long Island. Mr. Kanas became BankUnited’s chairman and chief executive after it failed. The Blackstone Group, the Carlyle Group, Centerbridge Partners and other buyout firms chipped in, too.
BankUnited quickly stabilized under Mr. Kanas. The privately held company, which has some $11 billion in assets and 78 branch locations throughout Florida, reported a $156.9 profit through the first nine months of 2010.
“We’ve heard that there’s a lot of interest in this company,” said Paul Bard, vice president of research at Renaissance Capital. “It’s almost like a fresh-start bank.”
Federal regulators shut down BankUnited in May 2009 after it sustained out-of-control losses on soured real estate loans. The collapse cost the Federal Deposit Insurance Corporation more than $5 billion, making it one of the most costly bank failures in history.
The bank’s consortium of private equity investors will fare far better than the government.
The investors, who pumped $900 million into the bank in 2009, originally planned to sell about 22 million shares, according to a Jan. 24 regulatory filing. That means they could earn some $600 million, more than two-thirds of the offering’s proceeds.
Mr. Kanas was originally expected to sell nearly one million shares, according to the Jan. 24 filing, which would earn him $27 million.
Carlyle planned to sell about five million shares, according to the filing. Carlyle appointed Pierre Olivier Sarkozy, a managing director at the firm and the half-brother of Nicolas Sarkozy, the president of France, to join the bank’s board.
Sue M. Cobb, the former ambassador to Jamaica, invested in the bank, joined its board and now plans to sell about 40,000 shares, according to the Jan. 24 filing.
The bank and its investors will collectively sell 29 million shares.
The bank itself aimed to sell four million shares, according to the Jan. 24 filing, raising about $100 million. The bank plans to use its proceeds from the deal for “general corporate purposes,” the filing said.
Morgan Stanley, Bank of America Merrill Lynch, Deutsche Bank and Goldman Sachs are underwriting the offering.
When it sells shares on Friday, BankUnited will become the second private equity-backed I.P.O. this week.
On Wednesday, the Nielsen Company had the largest private equity-backed offering since the $1.4 billion debut of Spirit Aerosystem in 2006. Nielsen, the consumer ratings firm, priced its shares at $23, raising roughly $1.9 billion.
They did have plans to acquire other banks, but they want deals like they got with the legacy BKU bank. Those days are over. They bid but too low to compete with others wishing to get a foothold in Florida. Senior management is more interested in getting back into banking in the NYC vicinity - which is why they bought a bank up there. Of course, Capital One has now sued Mr. Kanas for violating his non-compete agreement.