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First Banks consent solicitation for 8.15% debentures expires Jan. 21
By Marisa Wong
Madison, Wis., Nov. 19 - First Banks, Inc. has extended the consent solicitation to amend the indenture and other documents related to its 8.15% subordinated debentures due 2033 issued to First Preferred Capital Trust IV, according to a news release.
The company wants to amend the documents relating to the preferreds in order to increase its capital planning flexibility under the terms of those documents and the provisions of the indentures, guarantee agreements and trust agreements relating to its other tranches of trust preferred securities.
The amendments would provide an opportunity for the company to improve its capital position and decrease its debt levels at a time when it is deferring interest payments.
The consent solicitation began on Oct. 15 and will expire at 5 p.m. ET on Jan. 21, extended from Nov. 19.
The extension was made to give holders of the preferreds enough time and opportunity to evaluate the proposed amendments and submit their response.
As of the Friday, holders of about 663,000, or 36%, of the 1.84 million outstanding trust preferreds responded to the solicitation. Of that amount, nearly 73% have given their consents.
Terrance M. McCarthy, president and chief executive officer, said in the release, "We are pleased with the response that we have received so far to the consent solicitation. Clearly, many holders have recognized that the proposed amendments provide an important opportunity to improve the capital position of the company.
"However, an extension is necessary to ensure that all holders have adequate time to consider the proposed amendments and to provide a response. We thank all holders for their support of the company's efforts to improve its capital position and encourage any holder who has not responded to the solicitation to do so."
The solicitation agent is D.F. King & Co., Inc. (212 269-5550 or 800 290-6426).
The holding company for First Bank is based in Clayton, Mo.
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