By Evan Weinberger
New York, July 3 - First National Bancshares, Inc. priced $18 million in series A noncumulative convertible perpetual preferred stocks with a 7.25% dividend rate and a conversion premium of 18.7%. The offering was priced after market close Monday and the settlement date is July 9.
Keefe, Bruyette & Woods is the bookrunner. The shares have a liquidation preference of $25 and were offered at par.
The offering is for 720,000 shares, going up to 828,000 shares if an over-allotment allowance is exercised. The shares are expected to trade under the symbol FNSCP.
The preferreds have a conversion price of $17.50. Dividends will be paid out on March 31, June 30, Sept. 30 and Dec. 31 of each year beginning Sept. 30.
First National can force conversion within the first three years subject to a 140% hurdle. After three years, the preferreds are callable at $26.50 per $25 liquidation preference, subsequently declining to par.
First National is the holding company for First National Bank of the South, a Spartanburg, S.C.-based commercial bank. The company plans to use the proceeds to repay approximately $5 million under its revolving line of credit and use the rest for corporate purposes, including expansion of its branch network.
Issuer: First National Bancshares, Inc.
Issue: Series A noncumulative convertible perpetual preferred stock
Amount: $18 million
Number of shares: 720,000
Over-allotment option: 108,000 shares
Maturity: Perpetual
Liquidation preference: $25
Price: Par
Dividend rate: 7.25%
Conversion premium: 18.7%
Conversion price: $17.50
| Call: | Forced conversion for first three years subject to 140% hurdle, then at $26.50 per $25 liquidation preference
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| Pricing date: | July 2
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| Settlement date: | July 9
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| Listing: | FNSCP
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| Bookrunner: | Keefe, Bruyette & Woods
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