Citizens Republic registers 750 million shares for planned 7.5% trust preferreds, 5.75% notes offer

By Jennifer Chiou

New York, July 10 - Citizens Republic Bancorp, Inc. made moves to go forward with the upcoming exchange offers for the $125 million of 7.5% enhanced trust preferred securities issued by Citizens Funding Trust I and its $150 million of 5.75% subordinated notes due 2013.

The company registered 750 million shares of its common stock for a proposed maximum offering price of $179.45 million in an S-4 registration with the Securities and Exchange Commission to be issued in the exchanges.

Citizens Republic will offer shares in exchange for the debt securities. The exchange price will be based on the market trading level, using the volume weighted average price for the five consecutive trading days ending on the expiration date.

Further details have not yet been finalized.

On June 25, the Flint, Mich.-based bank announced that it was exploring several initiatives to bolster capital and strengthen its balance sheet, stating that is was considering:

• The previously mentioned exchange offers;

• One or more offerings of common stock or convertible preferred stock for cash; and

• An investment by the U.S. Treasury of up to $190 million under its Capital Assistance Program and up to an additional $100 million under the Capital Assistance Program that would be used to redeem a portion of the outstanding preferred stock issued to the Treasury in 2008.

At the time, the company said it believes that additional capital may be necessary to maintain and strengthen its balance sheet to withstand the effects of increased economic stress and uncertainty in the future.

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