Deal sells shares, series C and series D preferreds to six investors
By Devika Patel
Knoxville, Tenn., Jan. 4 - Northwest Bancorporation, Inc. negotiated a private placement of common shares with six investors to raise $3.9 million on Dec. 28, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company will sell 832,713 common shares at $4.68 per share, which represents a 15% discount to the average closing price of the stock over the 10 trading days preceding the pricing date, the company said in the filing, and is also a 14.91% discount to the Dec. 27 closing share price of $5.50.
The company will also raise additional funds in the deal by issuing convertible series C preferred shares and series D preferred shares.
After five years, each 7% series C preferred will be convertible into a maximum of 863,788 common shares. The 5.5% series D preferreds are not convertible.
Proceeds will be used to bid on the company's preferred stock that is to be auctioned by the U.S. Treasury in early 2013 as part of the TARP Capital Purchase Program and for general corporate purposes.
The bank holding company for Inland Northwest Bank is based in Spokane, Wash.
| Issuer: | Northwest Bancorporation, Inc.
|
| Issue: | Common stock, convertible series C preferred shares and series D preferred shares
|
| Amount: | $3,897,097
|
| Shares: | 832,713
|
| Price: | $4.68
|
| Warrants: | No
|
| Pricing date: | Dec. 28
|
| Stock symbol: | OTCBB: NBCT
|
| Stock price: | $5.50 at close Dec. 27
|
| Market capitalization: | $16.96 million
|
|
|
| Series C preferreds
|
| Dividends: | 7%
|
| Conversion rate: | Into a maximum of 863,788 common shares
|
|
|
| Series D preferreds
|
| Dividends: | 5.5%
|
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