Great Lakes Splits Its Preferred Shares 10 for 1
Great Lakes Bancorp's board has declared a 10-for-1 split of its perpetual preferred stock.
The move will make the issue more liquid, luring more potential buyers, and will bring the price of an individual share down to a level where retail investors are generally more active buyers, a spokesman said.
No Impact on Capital Ratios
The split will have no effect on Great Lakes' capital ratios, he said.
The Ann Arbor, Mich., savings bank issued the preferred stock in June 1990 by selling units.
Each unit included one-tenth of a share of preferred and one warrant to purchase common stock, and the units sold for $10 each. In effect, the preferred stock was priced at $100 a share.
Investors Wanted Switch
"Investors had 10 of something worth $90 to $100," the spokesman said. "They wanted to have 100 of something at $9 to $10."
Aug. 1 is the record date for the split, and the shares will be distributed Aug. 15.