Live Oak Bancshares, Inc. Closes Depositary Share Offering

Rhea-AI Summary

Live Oak Bancshares (NYSE: LOB) has successfully completed its previously announced depositary shares offering. The company issued 4,000,000 depositary shares, each representing a 1/40th interest in a share of its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock.

The offering, which had a liquidation preference of $25 per depositary share, generated net proceeds of approximately $96.15 million after deducting estimated expenses and underwriting discounts. Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and Keefe, Bruyette & Woods served as joint bookrunning managers for the transaction.

Positive

• Generated $96.15 million in net proceeds to strengthen capital position
• Successfully completed offering with support from major investment banks

Negative

• Potential increase in cost of capital with 8.375% Fixed Rate preferred stock
• Possible dilution of existing shareholders' equity

WILMINGTON, N.C., Aug. 04, 2025 (GLOBE NEWSWIRE) -- Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or the “Company”) announced the closing of its previously announced underwritten offering of 4,000,000 depositary shares, each representing a 1/40th interest in a share of its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”), with a liquidation preference of $25 per depositary share. As a result of the public offering, Live Oak received proceeds of approximately $96,150,000, net of estimated expenses and underwriting discounts and commissions.

Morgan Stanley & Co. LLC; RBC Capital Markets, LLC; UBS Investment Bank; and Keefe, Bruyette & Woods, A Stifel Company served as joint bookrunning managers for the offering.

A shelf registration statement, including a prospectus, with respect to the offering was previously filed by Live Oak with the Securities and Exchange Commission (the “SEC”) on January 17, 2023. A prospectus supplement relating to the offering has been filed with the SEC. The offering has been made by means of a prospectus supplement and accompanying prospectus. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, the Company, any underwriter, or any dealer participating in the offering will arrange to send you the prospectus supplement if you request it by calling Morgan Stanley & Co. LLC toll-free at 1-866-718-1649, RBC Capital Markets, LLC at 1-866-375-6829, UBS Investment Bank at 1-833-481-0269 or Keefe, Bruyette & Woods, A Stifel Company at 1-800-966-1559.

About Live Oak Bancshares
Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.

Contacts:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926
Claire Parker | Corporate Communications | Media Relations | 910.597.1592

FAQ

What is the size of Live Oak Bancshares' (LOB) depositary share offering in 2025?

Live Oak Bancshares issued 4,000,000 depositary shares with a liquidation preference of $25 per share, raising approximately $96.15 million in net proceeds.

What is the dividend rate for Live Oak Bancshares' Series A Preferred Stock?

The Series A Preferred Stock carries a 8.375% Fixed Rate and is structured as Non-Cumulative Perpetual Preferred Stock.

Who were the underwriters for Live Oak Bancshares' 2025 preferred stock offering?

The joint bookrunning managers were Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and Keefe, Bruyette & Woods.

How much does each depositary share of LOB's Series A Preferred Stock represent?

Each depositary share represents a 1/40th interest in a share of the Series A Non-Cumulative Perpetual Preferred Stock.

What will Live Oak Bancshares use the proceeds from the offering for?

While specific use of proceeds was not detailed in the announcement, preferred stock offerings typically help banks strengthen their capital position and support general corporate purposes.