Provident Bankshares files $174.22 million TARP preferreds, warrants for trading

By Susanna Moon

Chicago, March 17 - Provident Bankshares Corp. registered the $151.5 million of series A fixed-rate cumulative perpetual preferred stock it sold to the U.S. Treasury under the Troubled Asset Relief Program for public trading in an S-3 shelf registration with the Securities and Exchange Commission.

Also covered under the registration are $22.73 million warrants to purchase 2,374,608 common shares, exercisable at $9.57 until Nov. 14, 2018.

The preferreds pay cumulative dividends at 5% per year until Nov. 15, 2013, after which they step up to 9%.

The preferreds may not be redeemed prior to Nov. 15, 2011 unless the company has obtained proceeds from one or more equity offerings of $37.88 million.

Baltimore-based Provident said it will not receive proceeds from the reselling holders.

Issuer:	Provident Bankshares Corp.
Issue:	Series B preferred stock
Amount:	$151,500,000 (plus $22,724,998 warrants)
Maturity:	Perpetual
Dividend:	5%, steps up to 9% beginning Nov. 15, 2013
Call option:	Before Nov. 15, 2011 only with proceeds from equity offering(s) of $37,875,000; afterward at par
Warrants:	For 2,374,608 shares
Warrant exercise price:	$9.57
Warrant expiration:	Nov. 14, 2018

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