Bank of Boston Corp. said Thursday that it has completed the sale of 9.2 million shares of new preferred stock at $25 a share, raising $223 million in equity.
The proceeds boost the banking company's capital ratios by 75 basis points, bringing its pro forma Tier 1 and total capital ratios to 6.7% and 11.0%, respectively. The proceeds will go toward increasing capital at the lead bank, allowing it to pay the lowest deposit premiums and to seek brokered deposits without a regulatory waiver.
The stock issue was much larger than the 3.2 million shares the bank had planned just 10 days ago. The preferred stock has an annual dividend rate of 8.6%. Dividends will be paid quarterly.