Investors Douglass and Community BanCapital also will receive warrants
By Devika Patel
Knoxville, Tenn., Dec. 11 - Northwest Bancorporation, Inc. said it has arranged a $12.5 million private placement of 7.5% unsecured subordinated notes and common stock. It will raise $6.5 million in the shares sale and negotiated the $6 million notes offering with Harlan D. Douglass and Community BanCapital, LP. Douglass and Community BanCapital also participated in the stock sale.
The company will sell 1 million common shares. The purchase price of $6.50 per share reflects a 6.34% discount to the $6.94 closing share price on Dec. 10.
Douglass and Community BanCapital also received warrants for 200,000 common shares, each exercisable at $7.25, which is a 4.47% premium to the Dec. 10 closing price. The warrants expire in nine years.
Proceeds will be used to redeem the company's preferred stock that was issued under the U.S. Department of Treasury's Capital Purchase Program and to pay dividends on the preferreds, with any remaining proceeds to be used to support asset growth for the Northwest Bank and for general corporate purposes.
The bank holding company for Inland Northwest Bank is based in Spokane, Wash.
| Issuer: | Northwest Bancorporation, Inc.
|
| Issue: | Unsecured subordinated notes, common stock
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| Amount: | $12.5 million
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| Investors: | Harlan D. Douglass and Community BanCapital, LP
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| Pricing date: | Dec. 11
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| Stock symbol: | OTCBB: NBCT
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| Stock price: | $6.94 at close Dec. 10
|
| Market capitalization: | $21.44 million
|
|
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| Notes
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| Amount: | $6 million
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| Coupon: | 7.5%
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| Warrants: | For 200,000 shares
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| Warrant expiration: | Nine years
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| Warrant strike price: | $7.25
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|
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| Shares
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| Amount: | $6.5 million
|
| Shares: | 1 million
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| Price: | $6.50
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| Warrants: | No
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