By Rebecca Melvin
New York, June 6 - Citizens Republic Bancorp Inc. priced $120.4 million of contingent convertible perpetual preferred stock at par of $50 and a concurrent offering of $79.6 million of common stock, according to a news release.
The non-cumulative, series A preferreds will automatically convert into 12.5 shares of common stock, subject to anti-dilution adjustments, on the fifth business day after which shareholder approval has been received.
Citizens said it intends to seek approval no later than 120 days after the completion of the offering. Shareholder approval needs to be obtained to increase the number of authorized shares to allow for conversion of the preferred stock to common stock.
There is a 15% over-allotment option on each offering through bookrunners Morgan Stanley & Co. Inc. and Citigroup.
The offerings were made under Citizens' shelf registration.
The common shares were priced at $4.00 per share.
Proceeds were expected to provide additional capital to enhance Citizens' balance sheet.
Citizens Republic is a Flint, Mich.-based diversified financial services company.
| Issuer: | Citizens Republic Bancorp Inc.
|
| Issue: | Contingent convertible perpetual preferred shares
|
| Amount: | $120.4 million
|
| Greenshoe: | $18.06 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. Inc. and Citigroup
|
| Concurrent offering: | $79.6 million at $4.00 per share
|
| Price: | Par of $50
|
| Pricing date: | June 5
|
| Settlement date: | June 11
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: CRBC
|
| Stock price: | $4.39 at close June 5
|
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