Series A preferreds sold at $25.00 each; proceeds fund debt repayment
By Devika Patel
Knoxville, Tenn., Aug. 25 – F&M Bank Corp. arranged a $10 million public sale of its series A noncumulative mandatorily convertible preferred stock, according to a prospectus filed Monday with the Securities and Exchange Commission/
The company will sell the preferreds at $25.00 apiece. The price per preferred is a 35.14% premium to the Aug. 22 closing share price of $18.50. The preferreds have an annual dividend of $1.275 and are redeemable after three years.
Each preferred is initially convertible into 1.111 common shares at $22.50 per share. The conversion price is a 21.62% premium to the Aug. 22 closing share price.
FIG Partners, LLC and Compass Point Research & Trading, LLC are the agents.
Settlement is expected Sept. 30.
Proceeds will be used to redeem, repurchase or exchange the bank’s subordinated debt.
The bank holding company is based in Timberville, Va.
| Issuer: | F&M Bank Corp.
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| Issue: | Series A noncumulative mandatorily convertible preferred stock
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| Amount: | $10 million
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| Price: | $25.00
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| Annual dividend: | $1.275
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| Call: | After three years
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| Conversion price: | $22.50
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| Conversion ratio: | Into 1.111 common shares
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| Conversion premium: | 21.62%
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| Warrants: | No
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| Agents: | FIG Partners, LLC and Compass Point Research & Trading, LLC
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| Pricing date: | Aug. 25
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| Settlement date: | Sept. 30
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| Stock symbol: | OTCBB: FMBM
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| Stock price: | $18.50 at close on Aug. 22
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| Market capitalization: | $60.85 million
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