First Capital Bancorp redeems its remaining 5% series A preferreds

By Angela McDaniels

Tacoma, Wash., Jan. 14 - First Capital Bancorp, Inc. redeemed the remaining 5,531 shares of its 5% series A cumulative perpetual preferred stock on Jan. 10 for $5.6 million, according to an 8-K filing with the Securities and Exchange Commission.

Effective in April, the dividend rate would have increased to 9% per year.

The preferreds were redeemable at the option of the company subject to regulatory approval, which was received in November.

The company said it funded the redemption by executing a 10-year variable-rate subordinated note for $6.5 million with a financial institution. The subordinated note qualifies as tier 2 capital for regulatory purposes and carries an interest rate of 30-day Libor plus 500 basis points with a floor of 5.5%.

First Capital Bancorp is the Glen Allen, Va.-based bank holding company for First Capital Bank.

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