Provident Financial files to sell $150 million mandatory convertibles

By Peter Heap

New York, May 16 - Provident Financial Group, Inc. is planning an offering of $150 million of mandatory convertible securities using the Prides structure, according to a filing with the Securities and Exchange Commission.

The Cincinnati, Ohio banking and financial services company named Merrill, Lynch & Co. as the underwriter for the convertibles.

The securities will be jointly issued with its subsidiary PFGI Capital Corp., a real estate investment trust that owns commercial mortgages.

The issue will be structured as six million $25 par securities. There is a greenshoe for a further 900,000 or $22.5 million. The maturity will be three years.

Each Prides security will be made up of a forward purchase contract obliging the holder to buy Provident's common stock in 2005 and a share of series A preferred stock of PFGI Capital.

Provident Financial will use its proceeds from the offering for general corporate purposes, including working capital and funding future asset growth and strategic acquisitions while PFGI Capital will its share to buy participation interests in commercial mortgage loans from Provident Bank.

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