Proceeds used redeem $17.8 million preferreds issued in TARP program
By Devika Patel
Knoxville, Tenn., Sept. 9 - ECB Bancorp, Inc. increased a private placement of stock to $79.7 million from $75 million on Sept. 9, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on June 30.
The company is selling 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.
Under the amended agreement, Pacific Investment Management Co. LLC will invest $25.2 million, Patriot Financial Partners, LP will invest $22.5 million and Endicott Management Co. will invest $12.5 million. Three other investors will also participate.
The 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, redeem the $17.8 million preferred shares and associated warrants it issued under the TARP Capital Purchase Program, enhance the capital of East Carolina Bank and for other general corporate purposes.
The company also plans a $10 million rights offering at the same price per share.
ECB Bancorp, Inc. is a bank holding company, headquartered in Engelhard, N.C.
| Issuer: | ECB Bancorp, Inc.
|
| Issue: | Common stock
|
| Amount: | $79.7 million
|
| Price: | $16.00
|
| Warrants: | 25% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $8.00
|
| Investors: | Pacific Investment Management Co. LLC (for $25.2 million), Patriot Financial Partners, LP (for $22.5 million) and Endicott Management Co. (for $12.5 million)
|
| Pricing date: | June 30
|
| Upsized: | Sept. 9
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| Stock symbol: | Nasdaq: ECBE
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| Stock price: | $11.11 at close June 30
|
| Market capitalization: | $33.11 million
|
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