CHARLOTTE, NC, Nov.12, 2015 /PRNewswire/ --LendingTree, Inc. (NASDAQ: TREE) (the Company), a leading online loan marketplace, announced today the closing of the previously announced underwritten public offering of its common stock. In addition, the Company announced today that the underwriters have exercised their option to purchase 127,500 additional shares of common stock in connection with the underwritten public offering. The Company issued and sold 852,500 shares of its common stock and the selling stockholder sold 125,000 shares, at a price to the public of $115.00 per share, in the underwritten public offering.
Total net proceeds to the Company from the offering, after deducting underwriting discounts and commissions and other estimated offering expenses, were approximately $91.4 million. The Company expects to use the net proceeds from the offering for general corporate purposes, including, but not limited to, working capital and potential acquisitions. The Company received no proceeds from the offer and sale of shares by the selling stockholder.
BofA Merrill Lynch, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. acted as joint book-running managers for the offering. Guggenheim Securities, Needham amp; Company and Stephens Inc. acted as co-managers for the offering
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering of these securities will be made only by means of the prospectus supplement and the accompanying prospectus.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in the discussion above may be considered to be forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, as amended. Those statements include statements regarding the intent, belief or current expectations or anticipations of the Company and members of its management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: adverse conditions in the United States or global capital markets; adverse conditions in the primary and secondary mortgage markets and in the economy, particularly interest rates; willingness of lenders to make unsecured personal loans and purchase leads for such products from the Company; seasonality of results; potential liabilities to secondary market purchasers; changes in the Companys relationships with network lenders; breaches of network security or the misappropriation or misuse of personal consumer information; failure to provide competitive service; failure to maintain brand recognition; ability to attract and retain customers in a cost-effective manner; ability to develop new products and services and enhance existing ones; competition; allegations of failure to comply with existing or changing laws, rules or regulations, or to obtain and maintain required licenses; failure of network lenders or other affiliated parties to comply with regulatory requirements; failure to maintain the integrity of systems and infrastructure; liabilities as a result of privacy regulations; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; and changes in management. These and additional factors to be considered are set forth under Risk Factors in the Companys Annual Report on Form 10-K for the period ended December 31, 2014, Quarterly Reports on Form 10-Q for the periods ended June 30, 2015 and September 30, 2015, the prospectus supplement related to the offering and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
About LendingTree, Inc.
LendingTree, Inc. operates a leading online loan marketplace and provides consumers with an array of online tools and information to help them find the best loans for their needs. The Companys online marketplace connects consumers with multiple lenders that compete for their business, empowering consumers as they comparison-shop across a full suite of loans and credit-based offerings. The Company provides access to lenders offering home loans, home equity loans/lines of credit, reverse mortgages, personal loans, auto loans, small business loans, credit cards, student loans and more.
LendingTree, Inc. is headquartered in Charlotte, NC and maintains operations solely in the United States.
SOURCE LendingTree, Inc.
In a new report published Friday, Fitch Ratings says that banks will continue to focus on controlling costs and improving operating efficiencies in their battle to beef up margins until the Fed raises short-term lending rates.
According to the Fitch analysts, bank margins fell to 3.02% in the first quarter of this year, the lowest average net interest margin (NIM) since 1984. Fitch analysts go on:
The vast majority of the banks within Fitchs rating universe continue to disclose that they are asset-sensitive, meaning when rates rise, so does net interest income, as assets reprice faster than liabilities. However, many asset-sensitivity disclosures assume a 100-bps or 200-bps parallel increase in rates. Thus, a very gradual rate rise coupled with longer term rates remaining stable would make it unlikely for many US banks to see any meaningful NIM improvement over the near to immediate term.
In other words, a rate hike of 0.25% is not a lot of short-term help. And if the Fed pushes out further rate hikes at that same level at the rate of just one or two per year, banks profit margins are not going to get well any time soon. Or, as Fitch puts it:
In general, banks have extended balance sheet duration in this protracted low rate environment. Loans and securities maturing or repricing in greater than five years relative to total loan and securities portfolios have increased to nearly 30% from 25%. This shows a fairly clear strategy by some management teams to extend duration to augment asset yields as expectations turn to a lower rate environment well into 2016.
At least Fitch does not expect significant ratings changes due to interest rate risk. Bankers can take at least some comfort in that.
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By Paul Ausick
At one time or another, we've all had to pinch pennies to make ends meet. But for some households - too many of them minority households - access to credit when times are particularly tight can mean the difference between putting food on their table and watching their family go hungry.
Millions of Americans across the country have been helped by short-term lending to deal with periodic, unexpected expenses. Short-term lenders are important and valued members of our community, and their services support Americans who turn to short-term credit when their electric bill comes in higher than they expected - often the case in Arizona during the summer months - or when their car breaks down. Without access to short-term credit, many of these households must weigh incurring overdraft fees on their checking accounts that put them even further in the hole or face desperate decisions about healthcare, necessary repairs or childcare.