By Devika Patel
Knoxville, Tenn., April 21 - National City Corp. said it has agreed to conduct a $7 billion private placement of common stock and contingently convertible, perpetual non-cumulative preferred stock.
Corsair Capital will invest $985 million.
The company will sell 63,690 series G contingent convertible perpetual non-cumulative preferred shares at $100,000 per share for $6.37 billion. After receipt of certain approvals, each preferred will automatically convert into 20,000 common shares, subject to adjustment.
National City also will sell 126.2 million common shares at $5.00 per share for $631 million.
In addition, Corsair Capital and certain other investors will receive warrants, which are exercisable for common stock. These warrants have a term of five years and an exercise price equal to 115% of the average closing price of the company's common shares for the five-trading day period beginning April 21, with a cap of $8.50 per share.
National City is a Cleveland-based financial holding company with banking networks in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania and Wisconsin.
| Issuer: | National City Corp.
|
| Issue: | Series G contingent convertible perpetual non-cumulative preferred stock, common stock
|
| Amount: | $7 billion
|
| Warrants: | For certain investors
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 115% of the average closing price of the company's common shares for the five-trading day period beginning April 21, with a cap of $8.50
|
| Investor: | Corsair Capital (for $985 million)
|
| Pricing date: | April 21
|
| Stock symbol: | NYSE: NCC
|
| Stock price: | $8.33 at close April 18
|
|
|
| Preferreds
|
| Amount: | $6,369,000,000
|
| Shares: | 63,690
|
| Price: | $100,000
|
|
|
| Common shares
|
| Amount: | $631 million
|
| Shares: | 126.2 million
|
| Price: | $5.00
|
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