New York Community Bancorp cuts quarterly common dividend to 1c

As previously reported, on March 6, New York Community Bancorp entered into separate investment agreements with affiliates of funds managed by Liberty 77 Capital and certain other investors in order to facilitate the sale and issuance to the investors shares of common stock of the company, a new series of preferred stock of the company designated as Series B Non-Cumulative Convertible Preferred Stock and a new series of preferred stock of the company designated as Series C Non-Cumulative Convertible Preferred Stock at a price per share of $2.00 and for an aggregate investment amount of $1.05B. In addition, investors will receive 60% warrant coverage to purchase non-voting, common stock-equivalent stock with an exercise price of $2.50 per share, a 25% premium to the price paid on common stock. On March 7, NYCB released a presentation to investors about the proposed transactions, in which the bank disclosed that its common dividends have been reduced to 1c per share per quarter. In pre-market trading, shares of New York Community Bancorp are up 9c, or about 3%, to $3.55.