Porter Bancorp issues shares in exchange for $4.3 million of debt

By Susanna Moon

Chicago, Oct. 2 – Porter Bancorp, Inc. completed a common equity for debt exchange with holders of $4 million of the capital securities, or the trust securities, of Porter Statutory Trust IV on Sept. 30, according to an 8-K filing with the Securities and Exchange Commission.

In exchange for the $4.3 million debt and interest liability, the company issued 800,000 common shares and 400,000 non-voting common shares, for a total of 1.2 million shares.

The value received by Porter in this transaction was $4.33 million, or 1.2 million shares at $3.61 per share, the filing noted.

The closing price of Porter’s common stock was $1.40 on Sept. 30. The 10-day trailing average closing price per share was $1.47, and the 20-day trailing average closing price per share was $1.48.

In the transaction, a wholly owned subsidiary of Porter acquired a portion of the trust securities directly from a third party in exchange for 400,000 common shares. W. Glenn Hogan also purchased a portion of the trust securities from the holder and transferred his purchased trust securities to the Porter subsidiary in exchange for 400,000 common shares.

In addition, Patriot Financial Partners LP and its affiliate Patriot Financial Partners Parallel LP purchased the remaining trust securities from the holder and transferred their purchased trust securities to the Porter subsidiary in exchange for a total of 400,000 non-voting common shares. Hogan and the general partner of the Patriot Funds, W. Kirk Wycoff, are each directors of Porter.

Porter Bancorp is a Louisville, Ky.-based bank.

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