Colonial BancGroup starts roadshow Monday for $100 million trust preferreds

By Paul A. Harris

St. Louis, Mo., March 8 - The roadshow for Colonial BancGroup's offering of

$100 million of trust preferred securities due 2032 starts Monday according to a syndicate official.

"If we get a good launch on Monday we could price it as early as Thursday, depending on the market," the source commented.

"The market's been crazy the last few days, which we thought might hurt the timing and increase the price talk," the syndicate official added.

The lead managers on the deal are Lehman Brothers, and Stifel, Nicholas & Co., Inc. The co-managers are Morgan Keegan & Co., Sandler O'Neill & Partners, LP and Sterne, Agee and Leach, Inc.

The offering, to be sold via Colonial Capital Trust III. will be comprised of four million shares, priced at $25 per share. Provision has also been made by the underwriters, according to the SEC filing, for a green shoe of an additional 600,000 shares.

The notes are likely to be non-callable for five years, and will likely be traded on the New York Stock Exchange, according to the syndicate source, who added that the company intends to use the proceeds for general corporate purposes.

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