Series A preferreds sold at $25.00 each in public offering
By Jennifer Chiou
New York, Dec. 4 – F&M Bank Corp. announced that it has completed an initial $6.4 million tranche of its previously reported $10 million public sale of 5.1% series A noncumulative mandatorily convertible preferred stock.
According to a news release, the additional $3.6 million of preferred stock will be issued following the completion of regulatory review, anticipated prior to the end of the year.
The company sold 254,700 of the preferreds at $25.00 apiece in the first tranche. The company received $3.8 million in gross cash proceeds and $2.6 million in aggregate principal face amount of subordinated debt of Farmers & Merchants Bank, which the company agreed to accept in lieu of cash consideration.
The offering was announced on Aug. 25, and 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.
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.
|
| Issue: | Series A noncumulative mandatorily convertible preferred stock
|
| Amount: | $10 million
|
| Dividend: | 5.1%
|
| Price: | $25.00
|
| Shares: | 254,700 (initial tranche)
|
| Annual dividend: | $1.275
|
| Call: | After three years
|
| Conversion price: | $22.50
|
| Conversion ratio: | Into 1.111 common shares
|
| Conversion premium: | 21.62%
|
| Warrants: | No
|
| Agents: | FIG Partners, LLC and Compass Point Research & Trading, LLC
|
| Announcement date: | Aug. 25
|
| Settlement date: | Dec. 3 for initial $6.4 million
|
| Stock symbol: | OTCBB: FMBM
|
| Stock price: | $18.50 at close on Aug. 22; $19.20 at close on Dec. 3
|
| Market capitalization: | $63.17 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
