Series A preferreds sold at $25.00 each in public offering
By Toni Weeks
San Luis Obispo, Calif., Dec. 12 – F&M Bank Corp. announced that it has raised another $3.6 million in the second tranche of its previously reported $10 million public sale of 5.1% series A noncumulative mandatorily convertible preferred stock.
The company issued 145,300 shares at $25.00 apiece in the second tranche. It sold 254,700 preferreds at the same price in the first tranche on Dec. 3 for proceeds of $6.4 million.
According to an earlier news release, the second tranche was to follow the completion of a regulatory review, anticipated prior to the end of the year.
With the second closing, the company has completed its $10 million offering for aggregate net proceeds of about $9.6 million, including $2.6 million in 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 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
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| Amount: | $10 million
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| Preferred shares: | 400,000
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| Dividend: | 5.1%
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| Price: | $25.00
|
| Call: | After three years
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| Conversion premium: | 21.62%
|
| Conversion price: | $22.50
|
| Conversion ratio: | Into 1.111 common shares
|
| Warrants: | No
|
| Agents: | FIG Partners, LLC and Compass Point Research & Trading, LLC
|
| Announcement date: | Aug. 25
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| Settlement dates: | Dec. 3 (for $6.4 million); Dec. 12 (for $3.6 million)
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| Stock symbol: | OTCBB: FMBM
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| Stock prices: | $18.50 at close on Aug. 22
|
| Market capitalization: | $63.17 million
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