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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 6, 1998
FLAGSTAR CAPITAL CORPORATION
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(Exact name of Registrant as Specified in Charter)
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<CAPTION>
<S> <C> <C>
Michigan 0-23821 38-3386801
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
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2600 Telegraph Road, Bloomfield Hills, MI 48302
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(Address of Principal Executive Offices)
(248) 338-7700
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Registrant's telephone number, including area code
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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On March 6, 1998 Flagstar Capital Corporation (the "Company") completed the
sale of the remaining 300,000 shares of its 8.5% Noncumulative Exchangeable
Preferred Stock, Series A (the "Preferred Stock") following the initial sale on
February 24, 1998 of 2,000,000 shares of Preferred Stock. For further
information, see the press release attached hereto as Exhibit 1.
Exhibits
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(1) Press release dated March 9, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FLAGSTAR CAPITAL CORPORATION
DATE: March 6, 1998 By: /s/ Thomas J. Hammond
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Thomas J. Hammond
Chairman of the Board and
Chief Executive Officer
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EXHIBIT 1
NEWS RELEASE
FOR MORE INFORMATION CONTACT:
Michael W. Carrie
Executive Vice President/CFO
(248) 338-7700
FOR IMMEDIATE RELEASE
FLAGSTAR CAPITAL CORPORATION ANNOUNCES THE SALE OF ADDITIONAL
SHARES OF PREFERRED STOCK
Bloomfield Hills, Michigan (March 6, 1998) - Flagstar Capital Corporation
(Nasdaq: FLGSP), a subsidiary of Flagstar Bank, FSB, today announced that it has
completed the issuance of 2.3 million shares of 8.50% Noncumulative Series A
Preferred Stock. Today the Company closed on the issuance of 300,000 additional
shares of the stock. These shares were sold in response to the underwriter's
request to exercise the over-allotment option allowed them in the initial sale
completed on February 24, 1998. The stock began trading on the Nasdaq Stock
Market on February 19, 1998 on a when-issued basis.
Flagstar Capital Corporation has invested the proceeds from the offering in
residential mortgage loans purchased solely from its parent Flagstar Bank.
Flagstar Capital will qualify as a real estate investment trust ("REIT") for
federal income tax purposes, and as such, all dividends will be tax deductible
for the corporation. The preferred stock will qualify as regulatory capital for
the Bank, with certain restrictions.
Thomas J. Hammond, Chairman and C.E.O. of Flagstar Bank and Flagstar Capital,
stated "Flagstar's management team is proud of the response received from the
investment community. We expect to use these funds to continue our branch
expansion and to continue with the implementation of our asset growth strategy."
Flagstar Bank, FSB, the parent of the Company, is a $1.9 billion stock savings
bank and the largest independent savings institution headquartered in Michigan.
Flagstar Bank operates from 20 bank branches located in southern and western
Michigan, 41 loan origination centers located in Michigan, California, Florida,
and Ohio, along with 16 correspondent lending offices which are located across
the United States. Flagstar Bank is also one of the largest originators of
single family mortgage loans in the United States. Flagstar Bank is a wholly-
owned subsidiary of Flagstar Bancorp, Inc., whose common stock is traded on the
NASDAQ Stock Market under the symbol "FLGS".
Additional information regarding Flagstar may be accessed via the Internet at
http://www.flagstar.com.
