New

Stewart Secures $130m Through Stock Sale

Title and real estate services provider Stewart Information Services Corp. is raising nearly $130 million through a stock offering expected to close on Friday.

The capital raise comes roughly one month after Stewart announced its $330 million acquisition of the mortgage services division of property preservation provider Mortgage Contracting Services (MCS).

Stewart is offering 1.9 million shares of common stock at $68 per share. Underwriters also have a 30-day option to purchase up to 285,000 additional shares at the offering price. If exercised in full, the raise would total $148.6 million.

Goldman Sachs & Co. LLC is serving as lead bookrunner, with Citizens Capital Markets also participating. Immediately following the announcement, Stewart’s stock traded down 2.87% to $71.96.

On the M&A front, Stewart is expanding further into property preservation through the acquisition of MCS’s mortgage services unit. The deal is expected to close before year’s end and be immediately accretive. Stewart plans to fund the transaction with existing resources, and the division will continue to operate as a standalone business.

“Property preservation services are critical and necessary for servicers as part of the mortgage lifecycle, and currently a service Stewart does not offer,” Stewart CEO Fred Eppinger said when announcing the deal.

Back to Listing

credit:

Stewart Secures $130m Through Stock Sale

Popular Products