Vineyard cancels plans to sell $250 million of 10% convertible notes, will sell bank instead

By Devika Patel

Knoxville, Tenn., Nov. 17 - Vineyard National Bancorp is canceling its plans to raise $250 million by selling 10% convertible senior secured notes due 2009, according to a 10-Q filed Monday with the Securities and Exchange Commission. The deal priced Sept. 19.

The company was unable to raise investor support and therefore pursued other financing options, including the sale of Vineyard Bank, NA.

On Nov. 12, the company agreed to sell Vineyard Bank to Vineyard Bancshares, Inc.

The sale remains contingent upon Vineyard Bancshares completing a $125 million private placement and other, customary conditions.

Vineyard National is the holding company for Vineyard Bank and is located in Corona, Calif.

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