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Enterprise Bancorp redeems $10.5 million 10.875% trust preferreds
By Toni Weeks
San Luis Obispo, Calif., March 9 – Enterprise Bancorp, Inc. said it redeemed early all $10.5 million of the 10.875% trust preferred securities issued by Enterprise (MA) Capital Trust I due March 8, 2030.
The preferreds were callable at 102.719 plus accrued interest for a total redemption price of $11.4 million.
Approved on Jan. 29 by the company’s primary federal regulator, the redemption was financed with a portion of the proceeds from the company’s $15 million private placement of subordinated notes completed on Jan. 30.
The net result of the payoff of the trust preferreds and the issuance of subordinated notes is a $4.5 million increase in regulatory capital and a net cumulative pre-tax savings of about $1.7 million over the next 10 years, chief executive officer Jack Clancy said when the private placement was announced.
Based in Lowell, Mass., the company is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities.
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