Deal sells 8% debenture due June 28, 2021, warrant for 48,750 shares
By Devika Patel
Knoxville, Tenn., July 5 - First Internet Bancorp completed a $3 million private placement of a subordinated debenture on June 28, according to an 8-K filed Friday with the Securities and Exchange Commission.
Community BanCapital, LP is the investor.
The 8% debenture matures June 28, 2021. The debt may be prepaid after June 28, 2016.
The investor also received a warrant for 48,750 shares. The warrant is exercisable from June 28, 2014 to June 28, 2021. The strike price is $19.33, a 6.26% discount to the June 27 closing share price of $20.62.
The company can force an exercise of the warrant after the debenture has been repaid in full if the 20-day volume-weighted average price of its common stock exceeds $30.00.
Community BanCapital committed to provide an additional $3 million loan at the company's option on or before Dec. 31 under substantially similar terms and conditions.
First Internet Bancorp is an Indianapolis-based provider of online retail and business banking services.
| Issuer: | First Internet Bancorp
|
| Issue: | Subordinated debenture
|
| Amount: | $3 million
|
| Maturity: | June 28, 2021
|
| Coupon: | 8%
|
| Call option: | After June 28, 2016
|
| Warrant: | For 48,750 shares
|
| Warrant expiration: | June 28, 2021
|
| Warrant strike price: | $19.33
|
| Investor: | Community BanCapital, LP
|
| Settlement date: | June 28
|
| Stock symbol: | Nasdaq: INBK
|
| Stock price: | $20.62 at close June 27
|
| Market capitalization: | $59.88 million
|
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