Eastern Virginia Bankshares to conduct $45 million placement of stock

Keefe, Bruyette & Woods is placement agent; shares sold at $4.55 each

By Toni Weeks

San Luis Obispo, Calif., March 28 - Eastern Virginia Bankshares, Inc. arranged a $45 million private placement of common stock and series B non-voting mandatorily convertible non-cumulative preferred stock on March 26 with investor Castle Creek Capital Partners IV, LP, according to an 8-K filed Thursday with the Securities and Exchange Commission. Keefe, Bruyette & Woods, Inc. is the placement agent.

The company is selling 4,649,919 common shares and 5,240,192 series B preferreds, each at $4.55 per share. The per-share price is a 37.33% discount to the closing share price of $7.26 on March 25.

Each share of series B preferred stock will convert into one share of common stock under certain conditions.

The company also said it will conduct a rights offering to shareholders of record as of a date yet to be determined to purchase up to $5 million of common shares at the same price, the filing noted.

Tappahannock, Va.-based Eastern Virginia Bankshares is a bank holding company.

Issuer:	Eastern Virginia Bankshares, Inc.
Issue:	Common shares, series B non-voting mandatorily convertible non-cumulative preferred stock
Amount:	$45 million
Price:	$4.55
Agent:	Keefe, Bruyette & Woods, Inc.
Investor:	Castle Creek Capital Partners IV, LP
Pricing date:	March 26
Stock symbol:	Nasdaq: EVBS
Stock price:	$7.26 at close March 25
Market capitalization:	$34.35 million
Common stock
Amount:	$21,157,131
Shares:	4,649,919
Preferreds
Amount:	$23,842,874
Shares:	5,240,192
Call:	No

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