Company: WAL-PA
Filing Date: 2025-03-25
Form Type: 8-K
Source: 0001212545-25-000113
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Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-03-25
Form: 8-K
Item: Item 1.01
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ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On March 24, 2025, Western Alliance Bancorporation (the “ Company”), its wholly owned subsidiary Western Alliance Bank (the “ WAB”) and BW Real Estate, Inc., a real estate investment trust subsidiary of WAB (“ BW”), entered into a Purchase Agreement (the “ Purchase Agreement”) with J. P. Morgan Securities LLC and MUFG Securities Americas Inc., as representatives for the initial purchasers named therin (the “ Purchasers”), pursuant to which, subject to the satisfaction of the conditions set forth therein, BW agreed to issue and sell, and the Purchasers severally agreed to purchase, an aggregate of 300,000 shares of BW’s 9.500% Fixed-Rate Reset Non-Cumulative Exchangeable Perpetual Series B Preferred Stock, no par value per share (“ Series B preferred stock”), with a liquidation preference of $1,000 per share. The offering is expected to result in net proceeds before expenses of $294,750,000.

The issuance of preferred capital by BW is expected to create tax efficiencies for the Bank and the Company because interest on the Series B Preferred Stock becomes a deductible expense as it is paid by the real estate investment trust prior to any taxable dividends to WAB. BW may, at its option and subject to any required regulatory approval, redeem the Series B preferred stock in whole or in part, from time to time, on any dividend payment date on or after March 30, 2030, or in whole but not in part, upon a certain events including a change in regulatory capital treatment. The Series B preferred stock is automatically exchangeable for newly issued 9.500% Fixed-Rate Reset Non-Cumulative Perpetual Series A Preferred Stock of WAB upon receipt of a directive from the Board of Governors of the Federal Reserve or any other appropriate federal regulatory authority upon the occurrence of certain specified exchange events.

The joint bookrunning managers for the offering are J. P. Morgan Securities LLC, MUFG Securities Americas Inc. and Keefe, Bruyette & Woods, Inc. The offering is being made pursuant to exemptions from registration under the Securities Act of 1933, as amended (the “ Act”), in accordance with Rule 144A and Regulation S under the Act. The offering is expected to be completed on March 27 2025, subject to customary closing conditions.

The Purchase Agreement contains customary representations, warranties and agreements by the Company, WAB and BW