The stock of MBNA Corp., the Newark, Del., credit card company that is being spun off by MNC Financial Inc., was scheduled to begin selling today on the New York Stock Exchange for $22.50 a share, according to the New York Stock Exchange.
At that price, the 45 million-share stock offering would raise a total of $1.01 billion.
The credit card company, which was known as MBNA America while it was a subsidiary, is considered MNC's jewel.
It had net income of $129 million last year, a 23.9 percent increase over earnings of $104.1 million in 1989.
MNC, the parent company of Maryland National Bank and American Security of Washington, is depending on the proceeds of the offering to pay about $653 million in debt coming due in the next few months.
The bank-holding company will have to repay $271 million to its banks on Feb. 4, $275 million to note holders on Feb. 5, and $107 million in other debt on or after March 19.
MNC last week said it expected the stock would sell at an initial price of between $21 and $23 a share.
The stock prospectus said that all proceeds over $21 a share will be contributed to MNC's bank subsidiaries to boost their capital levels.
At the price of $22.50 a share, $67.5 million would go to the banks.
MBNA will trade under the symbol KRB.
The major buyer of the stock is Alfred Lerner, MNC's chairman and chief executive officer, and his Cleveland-based insurance company, the Progressive Corp. Lerner and Progressive had said they plan to buy 24.9 percent of the stock of MBNA, according to the prospectus.
The purchase will cost Lerner and Progressive about $252 million at the $22.50 trading price.
Lerner is also seeking regulatory approval to be chairman of MBNA "until MNC Financial is restored to a sound condition but in no event longer than two years," according to a previous release.
MNC said it is seeking a new chief executive as "soon as practicable."