Live Oak Bancshares Announces New Depositary Share Offering Details

Author: Dominic Sanders Updated: 07-28-2025 06:00 PM

Live Oak Bancshares, Inc. Prices New Offering

Live Oak Bancshares, Inc. (NYSE: LOB) has recently announced an underwritten offering of 4,000,000 depositary shares. Each of these shares will represent a 1/40th ownership interest in its Series A Fixed Rate Non-Cumulative Perpetual Preferred Stock, boasting an 8.375% dividend rate.

Understanding the Dividend Structure

Dividends on this Series A Preferred Stock will be declared by the company’s board of directors. Payments will be made quarterly, specifically on March 15, June 15, September 15, and December 15, commencing on September 15, 2025. This structured approach to dividend payments aims to provide a predictable income stream for investors.

Redemption and Listing Plans

Live Oak Bancshares reserves the right to redeem these shares starting on September 15, 2030. Further, they plan to list these depositary shares on the New York Stock Exchange under the symbol “LOB PR A,” which will enhance trading visibility and liquidity.

Utilization of Net Proceeds

The anticipated net proceeds from this offering are earmarked for broad corporate purposes. These funds will mainly support the growth of Live Oak Bank’s balance sheet and fortify the company's overall capital strength, which is pivotal for continuing operational success.

Collaborative Efforts with Investment Firms

To execute this offering, Live Oak Bancshares has engaged several leading firms, namely Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Investment Bank, and Keefe, Bruyette & Woods, a Stifel Company, showcasing a robust partnership that provides strong underwriting support.

Next Steps for Shareholders and Investors

The company plans to close this offering soon after customary closing conditions are met. This process could culminate by approximately August 4, 2025, marking an important milestone in its capital strategy.

About Live Oak Bancshares

Live Oak Bancshares Inc. is not just a bank; it's a forward-thinking financial holding company leveraging technology to enable innovative banking solutions. By prioritizing service and efficiency, Live Oak aims to redefine customer relationships in banking while also ensuring strategic growth.

Company Contact Information

Frequently Asked Questions

What type of shares is Live Oak Bancshares offering?

They are offering depositary shares representing a 1/40th interest in their Series A Fixed Rate Non-Cumulative Perpetual Preferred Stock.

When will dividends be paid?

Dividends will be paid quarterly, starting on September 15, 2025, if declared by the board.

What is the redemption schedule for these shares?

The shares may be redeemed starting from September 15, 2030, subject to terms defined in the offering.

How will Live Oak use the proceeds from this offering?

The proceeds are intended to enhance corporate balance sheet growth and strengthen the capital position of Live Oak Bank.

Who are the underwriters for this offering?

Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and Keefe, Bruyette & Woods are the joint bookrunning managers for the offering.

About The Author

Dominic Sanders here, a writer and financial specialist committed to helping my readers understand the world of finance. Having a strong financial background and a lot of experience, I concentrate on using my blog posts and articles to translate difficult financial subjects into understandable, doable advice. My goal in writing is to arm you with the information and skills need to make wise financial choices.

Writing for several financial blogs has let me interact with a wide range of readers, from novice investors seeking new perspectives to seasoned investors. My mission is to make money understandable and approachable so you may confidently take charge of your financial future. I appreciate you walking this road with me to success and financial literacy.

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