By Sheri Kasprzak
New York, Sept. 27 - AmeriServ Financial, Inc. said it has received definitive agreements for a $10,299,756 private placement.
The company sold 2,367,760 shares at $4.35 each to a group of institutional investors led by Crestview Capital and including Financial Stock Capital Partners II LP.
Lehman Brothers Inc. was the placement agent.
The offering is expected to close on Sept. 29.
Of the proceeds raised from the private placement, AmeriServ will contribute $1 million to the capital of AmeriServ Financial Bank and $1 million to its trust company subsidiary. The rest will be used to redeem its outstanding 8.45% trust preferred securities.
Separately, AmeriServ said it has undertaken a balance sheet restructuring to be finished by the end of the third quarter. The restructuring includes the prepayment of $100 million in long-term convertible advances from the Federal Home Loan Bank of Pittsburgh and the termination of related interest rate swaps.
Based in Johnstown, Pa., AmeriServ is the holding company for AmeriServ Financial Bank and AmeriServ Trust & Financial Services Co.
| Issuer: | AmeriServ Financial, Inc.
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| Issue: | Stock
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| Amount: | $10,299,756
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| Shares: | 2,367,760
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| Price: | $4.35
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| Warrants: | No
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| Investors: | Crestview Capital (lead); Financial Stock Capital Partners II, LP, other investors
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| Placement agent: | Lehman Brothers Inc.
|
| Announcement date: | Sept. 27
|
| Settlement date: | Sept. 29
|
| Stock price: | $4.54 at close Sept. 26
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