Investors who had pledged $8.25 million opt out of sale after delays
By Devika Patel
Knoxville, Tenn., Nov. 21 - First Mid-Illinois Bancshares, Inc. settled a $5.49 million third tranche of a $27.5 million private placement of series C 8% non-cumulative perpetual convertible preferred stock on May 13, according to an 8-K filed Monday with the Securities and Exchange Commission. The company sold $11.01 million of the securities on Feb. 11; it raised $2.75 million on March 2.
The company also reported that the remaining investors for the placement have not yet received their $8.25 million of preferreds due to "unanticipated delays in applying for and obtaining the approval of the Federal Reserve Board." The company instead issued short-term unsecured promissory notes to the investors, who instead opted to have the escrowed investment funds returned to them. As a result, the placement stands completed at $19.25 million.
The preferreds are convertible into common stock at an initial conversion price of $20.29 per share, an 11.18% premium to the Feb. 10 closing share price of $18.25. The company may redeem the preferreds or force conversion after five years.
First Mid-Illinois is a Mattoon, Ill., financial holding company.
Issuer: | First Mid-Illinois Bancshares, Inc.
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Issue: | Series C 8% non-cumulative perpetual convertible preferred stock
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Amount: | $27.5 million
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Dividends: | 8%
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Conversion price: | $20.29
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Conversion premium: | 11.18%
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Call: | After five years
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Warrants: | No
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Settlement dates: | Feb. 11 (for $11.01 million), March 2 (for $2.75 million), May 13 (for $5.49 million)
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Stock symbol: | OTCBB: FMBH
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Stock price: | $18.25 at close Feb. 10
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Market capitalization: | $108.24 million
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