By Jennifer Chiou
New York, April 2 - Federal Trust Corp. on Tuesday entered into a note purchase agreement with Hartford Financial Services Group, Inc., under which the company issued a $20 million note to Hartford.
The note bears interest at 10% per year and matures on March 31, 2010.
Proceeds were contributed to Federal Trust Bank.
In addition, on March 31, the Office of Thrift Supervision modified the directive issued to Federal Trust Bank to extend to June 30 the date by which Federal Trust must either merge with or be acquired by another financial institution or financial holding company, or sell all or substantially all of its assets and liabilities to another financial institution or financial holding company.
On Sept. 29, 2008, the company said that negotiations with an investor group based in New York and Florida had been terminated. As a result, Federal Trust was free to negotiate with other parties with respect to the acquisition of, or an investment in, the company, a prior company news release said.
On Sept. 19, 2008, it was announced that Federal Trust had entered into a letter of intent with the investor group. The group planned to invest between $40 million and $55 million in the Sanford, Fla.-based thrift holding company in exchange for control.
| Issuer: | Federal Trust Corp.
|
| Issue: | Note
|
| Amount: | $20 million
|
| Maturity: | March 31, 2010
|
| Coupon: | 10%
|
| Price: | Par
|
| Investor: | Hartford Financial Services Group, Inc.
|
| Settlement date: | March 31
|
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