Purchase price reflects 39.13% premium to closing price last Friday
By Susanna Moon
Chicago, Aug. 19 - Delanco Bancorp, Inc., a holding company for Delanco Federal Savings Bank, said it plans to begin a "second-step" offering of new common shares. The company received approval from the board of governors of the Federal Reserve System to reorganize from a two-tier mutual holding company structure to a stock holding company structure.
The bank is offering to sell between 451,653 and 610,938 shares at a purchase price of $8.00 per share, which reflects 39.13% premium to the closing price on Aug. 16.
The shares will be offered in a subscription offering first to depositors of Delanco Federal Savings Bank with a qualifying deposit as of April 30, 2012, second to the bank's tax-qualified employee stock ownership plan, third to depositors of the bank with a qualifying deposit as of June 30, 2013 and finally to depositors of the bank as of July 31 and borrowers of the bank as of Nov. 14, 1994 whose loans continue to be outstanding as of July 31, according to a company press release.
Concurrently with the subscription offering, new Delanco Bancorp is offering any shares of common stock that are not subscribed to members of the general public in a community offering, with a preference given to natural persons residing in Burlington County, N.J., then to shareholders of old Delanco Bancorp and then to other members of the general public.
To the extent any shares offered for sale are not purchased in the subscription or community offerings, they may be sold in a syndicated community offering to be managed by Keefe, Bruyette & Woods, Inc., the press release added.
The subscription and community offerings are set to end at 2 p.m. ET on Sept. 17.
The second-step conversion must be approved by a majority of the votes eligible to be cast by depositors and borrowers at a meeting to be held on Sept. 26. Depositors of Delanco Federal Savings Bank as of the close of business on July 31 and borrowers of Delanco Federal Savings Banks as of Nov. 14, 1994 whose loan continues to be outstanding at July 31 will be entitled to vote at the special meeting.
Keefe, Bruyette & Woods will sell the shares on a best-efforts basis.
Delanco Bancorp is the parent company of Delanco Federal Savings Bank, a community-oriented financial institution operating two full-service branch locations in Burlington County, New Jersey.
The Delanco, N.J.-based bank.
| Issuer: | Delanco Bancorp, Inc.
|
| Issue: | Common stock
|
| Amount: | Up to $4,887,504
|
| Shares: | Up to 610,938
|
| Price: | $8.00
|
| Warrants: | No
|
| Agent: | Keefe, Bruyette & Woods
|
| Pricing date: | Aug. 19
|
| Settlement date: | Sept. 17
|
| Stock symbol: | OTCBB: DLNO
|
| Stock price: | $5.75 at close Aug. 16
|
| Market capitalization: | $9.4 million
|
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