Friday, March 8, 2013

BankUnited's PEU Cash In Part Deux

FDIC's Sheila Bair subsidized the private equity rescue of BankUnited with $2.27 billion in cash.  Private equity underwriters (PEU's) monetized their initial chunk of BankUnited a mere year after "saving it."  They're ready for Monetizing:  Round 2.

Among the largest PEU shareholders of BankUnited:

  • The Blackstone Group, which owns 8.3 million shares of common stock, is selling 4.8 million shares. Some of the shares it would sell will be converted from Series A Preferred Stock.
  • The Carlyle Group, which owns 13.7 million shares, would sell 4.8 million of them.
  • WL Ross & Co., controlled by Palm Beach billionaire Wilbur Ross, would also sell 4.8 million of its 13.7 million shares.
  • Centerbridge Partners, which owns 10.8 million shares, would sell 3.8 million of them. 
The shares priced at $25.25, giving $495 million to BankUnited's PEU owners.  This compares unfavorably to the $27 IPO price which brought in $780 million.  The two offerings total $1.27 billion.  BankUnited's PEU owners invested $900 million.  They're already in the green with over half their initial shares left thanks to the FDIC.