Subsequent Event

3 Months Ended

Mar. 31, 2013

Subsequent Event

Subsequent Event

12. Subsequent Event

On April 10, 2013, we called our Junior Subordinated Debentures for prepayment in whole pursuant to the optional prepayment provisions of the indenture for the Junior Subordinated Debentures.  The prepayment is scheduled to occur on May 10, 2013.  The prepayment price for the Junior Subordinated Debentures will be 103.413% of the $128.9 million aggregate principal amount of the Junior Subordinated Debentures outstanding, plus accrued and unpaid interest to, but not including, the date of repayment.

As a result of the prepayment in whole of the Junior Subordinated Debentures, Astoria Capital Trust I will simultaneously apply the proceeds of such prepayment to redeem its $125.0 million aggregate liquidation amount of Capital Securities, as well as the $3.9 million of common securities owned by Astoria Financial Corporation.  The prepayment of the Junior Subordinated Debentures on May 10, 2013 will result in a net prepayment penalty of $4.3 million in the 2013 second quarter.  See Note 1 for additional information on Astoria Capital Trust I, the Capital Securities and our Junior Subordinated Debentures.