The securities, which represent "an undivided beneficial interest in the assets of Countryside Capital Trust IV," will be offered in denominations of $25 each, according to a recently released company statement. Each security holder will receive quarterly cash distributions at an annual rate of 6.75%, to be paid in July, October, January and April of each year.
Countrywide Capital has applied to have the preferred securities listed on the New York Stock Exchange. If approved, the securities will be listed under the symbol "CFC Pr A" with trading expected to begin within 30 days after they settle.
Morgan Stanley and Salomon Smith Barney are acting as joint book-running managers for the offering, with Countrywide Securities Corp., Merrill Lynch & Co., and Wachovia Securities serving as senior co-managers and Banc of America Securities LLC, Banc One Capital Markets Inc. and JPMorgan working as junior co-managers.
Company officials say the net proceeds of the sale, which includes the underwriting commission paid by Countrywide Financial, will be $484.3 million. Countrywide Capital will use the sale proceeds to invest in Countrywide Financial's junior subordinated debentures. Countrywide Financial will, in turn, use the proceeds from the subordinated debentures sale for general corporate purposes. According to company officials, Countrywide Capital is required to redeem the outstanding preferred securities when the junior subordinated debentures are paid at maturity on April 1, 2033.
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