Merchants Bancorp (MBIN) said Monday it priced an underwritten public offering of 9.2 million depositary shares.

Each depositary share represents 2.5% ownership interest in a share of its 7.625% fixed rate series E non-cumulative perpetual preferred stock, according to the company.

The depositary shares can be redeemed by the company at $25 a piece, Merchants Bancorp added.

The company said dividends on the series E preferred stock will be paid in quarterly arrears at a rate of 7.625% per year starting Jan. 1.

Net proceeds from the sale are expected to be used for paying off Merchants' series B preferred stock and for general corporate purposes, according to the company.

The firm anticipates to close the offering on or about Nov. 25.

Shares of Merchants Bancorp were down nearly 2% in after-hours activity.