Washington Mutual Savings Bank announced plans Wednesday to raise $150 million from two sales of preferred stock to support an ambitious acquisition program.
Assets at the Seattle-based thrift will mushroom next year to about $14 billion, from $8.4 billion, after completion of the purchases of Pacific First Financial Corp., Seattle, and Pioneer Savings Bank, Lynnwood, Wash., according to spokesman Scott Selby.
Common Trades Near High
Washington Mutual plans to issue $50 million in noncumulative perpetual preferred stock and $100 million in noncumulative convertible perpetual preferred stock.
The company's common shares were trading at $31.875 Wednesday afternoon, just a tad below the 52-week high of $32.
Kerry K. Killinger, Washington Mutual's chairman, said this month that the thrift would raise $150 million to $200 million in equity, including a common stock offering.
Mr. Selby declined to comment on whether the company also plans to issue common stock.
Capital Ratios Strong
Washington Mutual has strong capital levels, including 7.0% leverage and 10.9% Tier 1 capital ratios at the end of September.
Management has said the new capital issues will allow Washington Mutual to maintain its ratios after the acquisitions are completed, said Gareth Plank, an analyst at Mabon Securities Inc., San Francisco.
Mr. Selby declined to disclose what the capital ratios would be after issuance of the preferred stock.
Washington Mutual's preferred stock is rated below investment grade - Ba1 by Moody's Investors Service and BB-plus by Standard & Poor's Corp.
The thrift did not disclose the underwriters or timing of the preferred issues.
Salomon Brothers Inc. was lead manager for Washington Mutual's last two securities issues, including a 1991 common stock offering and a 1989 issue of convertible preferred stock.