Live Oak Bancshares Closes Underwritten Offering of 4,000,000 Deposit Shares of Series A Preferred Stock, Raising Approximately $96 Million

Live Oak Bancshares completed an offering of 4 million depositary shares, raising approximately $96.15 million.

Quiver AI Summary

Live Oak Bancshares, Inc. has successfully closed an underwritten offering of 4,000,000 depositary shares representing a 1/40th interest in its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock, which has a liquidation preference of $25 per share. The company raised approximately $96.15 million from this public offering, after accounting for expenses and fees. Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and Keefe, Bruyette & Woods served as joint bookrunning managers for the deal. The offering was registered with the SEC, and interested parties can access the relevant documents through the SEC's website or request them from the underwriters. Live Oak Bancshares, the parent company of Live Oak Bank, focuses on innovative banking solutions through service and technology.

Potential Positives

Successfully closed the offering of 4,000,000 depositary shares, raising approximately $96,150,000 in net proceeds, which can be used for further investments or business expansion.
Introduced a new 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock, potentially appealing to investors looking for stable income investment options.
Engaged reputable financial institutions (Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and Keefe, Bruyette & Woods) as joint bookrunning managers, enhancing credibility and investor confidence in the offering.

Potential Negatives

The offering of preferred stock may signal that the company is in need of additional capital, which could raise concerns about its financial health.
Issuing preferred stock can dilute existing shareholders' interests and may lead to future dividend obligations that impact cash flow.
The reliance on underwriters and market conditions for the success of this offering might reflect uncertainty in the company's ability to raise funds independently or through traditional methods.

FAQ

What is the purpose of Live Oak's recent offering?

Live Oak's recent offering aims to raise capital through the sale of depositary shares representing Series A Preferred Stock.

How much capital did Live Oak raise from this offering?

The offering raised approximately $96,150,000, net of estimated expenses and underwriting discounts.

Who managed the underwritten offering for Live Oak Bancshares?

The offering was managed by Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and Keefe, Bruyette & Woods.

Where can I find the prospectus for Live Oak's offering?

The prospectus can be accessed for free on the SEC's EDGAR website at www.sec.gov.

What type of stock does the offering involve?

The offering involves 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$LOB Insider Trading Activity

$LOB insiders have traded $LOB stock on the open market 3 times in the past 6 months. Of those trades, 2 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $LOB stock by insiders over the last 6 months:

WILLIAM HENDERSON CAMERON has made 2 purchases buying 10,000 shares for an estimated $260,110 and 0 sales.
TONYA WILLIAMS BRADFORD sold 2,500 shares for an estimated $66,275

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$LOB Hedge Fund Activity

We have seen 121 institutional investors add shares of $LOB stock to their portfolio, and 91 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CAPITAL INTERNATIONAL INVESTORS removed 2,041,706 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $54,431,881
AMERIPRISE FINANCIAL INC removed 755,257 shares (-91.4%) from their portfolio in Q1 2025, for an estimated $20,135,151
MILLENNIUM MANAGEMENT LLC added 596,841 shares (+655.6%) to their portfolio in Q1 2025, for an estimated $15,911,781
BALYASNY ASSET MANAGEMENT L.P. added 353,105 shares (+2211.7%) to their portfolio in Q1 2025, for an estimated $9,413,779
CITIGROUP INC added 239,356 shares (+428.2%) to their portfolio in Q1 2025, for an estimated $6,381,230
D. E. SHAW & CO., INC. added 225,459 shares (+141.8%) to their portfolio in Q1 2025, for an estimated $6,010,736
LOOMIS SAYLES & CO L P removed 219,632 shares (-93.5%) from their portfolio in Q1 2025, for an estimated $5,855,389

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

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 .