Financial holding firm offers common shares, 9% convertible preferreds
By Devika Patel
Knoxville, Tenn., Dec. 29 - First Busey Corp. said it negotiated a registered direct offering of series B mandatorily convertible cumulative preferred stock and common stock. The deal will raise $85.92 million.
The company will sell 12,718,635 common shares at $4.25 per share for $54.05 million and 318.6225 preferreds at $100,000.00 per preferred for $31.86 million. The price per common share is a 6.18% discount to the Dec. 28 closing share price of $4.53.
The preferreds convert into 7,497,000 common shares and are subject to mandatory conversion at $4.25 per share, also a 6.18% discount to the Dec. 28 closing price.
Until the convertible preferred stock is converted into common stock, the investors will receive cumulative cash dividends at an annual rate equal to 9% of the liquidation amount per share.
Settlement is expected Dec. 31.
Proceeds will be used for general corporate purposes.
"Our priorities are balance sheet strength, profitability and growth - in that order," the company's president and chief executive officer Van Dukeman said in a press release. "This capital raise signals the start of a gradual shift in direction for Busey. While we still have work ahead of us improving our asset quality and earnings, it is time to begin to grow again."
Based in Urbana, Ill., First Busey is a financial holding company.
| Issuer: | First Busey Corp.
|
| Issue: | Series B mandatorily convertible cumulative preferred stock and common stock
|
| Amount: | $85,916,449
|
| Warrants: | No
|
| Pricing date: | Dec. 29
|
| Settlement date: | Dec. 31
|
| Stock symbol: | Nasdaq: BUSE
|
| Stock price: | $4.53 at close Dec. 28
|
| Market capitalization: | $312.56 million
|
|
|
| Preferreds
|
| Amount: | $31,862,250
|
| Preferreds: | 318.6225
|
| Price: | $100,000.00
|
| Dividends: | 9%
|
| Conversion price: | $4.25
|
| Conversion ratio: | Into 7,497,000 shares
|
|
|
| Common shares
|
| Amount: | $54,054,199
|
| Price: | $4.25
|
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