Proceeds used to redeem $17.8 million preferreds issued in TARP program
By Devika Patel
Knoxville, Tenn., June 30 - ECB Bancorp, Inc. said it has negotiated a $75 million private placement of stock.
The company will sell 4,687,500 common shares at $16.00 apiece. The price per share reflects a 44.01% premium to the June 29 closing share price of $11.11.
Investors will also receive 25% warrant coverage. The five-year warrants are each exercisable at $8.00, which is a 27.99% discount to the June 29 closing price.
Proceeds will be used to support the company's future operational growth, to redeem the $17.8 million preferreds and associated warrants it issued under the TARP Capital Purchase Program, to enhance the capital of East Carolina Bank and for other general corporate purposes.
The company said it will also conduct a $10 million rights offering at the same price per share.
"We are pleased to announce the $75 million common stock offering, which we believe will be beneficial to our shareholders and will enhance our strategic opportunities to grow and diversify our geographic footprint, including organic growth, de novo market expansion and potential future acquisitions," president and chief executive officer A. Dwight Utz said in a press release. "The board of directors and management of the company are also pleased to align ourselves with the investors in the offering. Patriot Financial Partners, LP and Endicott Management Co., along with the other investors in the transaction, are experienced investors who will bring additional expertise and focus to our company."
ECB Bancorp, Inc, a bank holding company with headquarters in Engelhard, N.C., is the parent company of East Carolina Bank.
Issuer: | ECB Bancorp, Inc.
|
Issue: | Common stock
|
Amount: | $75 million
|
Shares: | 4,687,500
|
Price: | $16.00
|
Warrants: | 25% coverage
|
Warrant expiration: | Five years
|
Warrant strike price: | $8.00
|
Investors: | Patriot Financial Partners, LP and Endicott Management Co.
|
Pricing date: | June 30
|
Stock symbol: | Nasdaq: ECBE
|
Stock price: | $11.11 at close June 30
|
Market capitalization: | $31.65 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.