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Greater Atlantic extends 6.5% convertible preferreds offer to Nov. 30
By Devika Patel
Knoxville, Tenn., Nov. 16 - Greater Atlantic Financial Corp. said it has extended its cash offer to purchase up to 649,150 of the 6.5% cumulative convertible trust preferred securities issued by Greater Atlantic Capital Trust I to 5 p.m. ET on Nov. 30 from Nov. 6.
As of Nov. 16, holders had tendered 643,580 securities, which exceeded the minimum tender requirement of 505,040 securities.
On June 15, Greater Atlantic entered into a merger agreement with MidAtlantic Bancorp, Inc. and GAF Merger Corp., under which MidAtlantic will acquire and recapitalize Greater Atlantic Bank, Greater Atlantic's wholly owned subsidiary.
The merger is conditioned on a successful tender offer for the cumulative convertibles.
The company said it will pay $1.05 in cash, less any withholding taxes and without interest, for each trust preferred.
The directors of Greater Atlantic and certain other holders that collectively own 311,587 of the securities have agreed to sell their holdings to Greater Atlantic for $0.01 apiece in transactions entered into prior to the announcement of the tender offer.
Greater Atlantic said that these holders agreed to accept $0.01 for each of their securities to allow for a greater amount of consideration to be allocated to the remaining trust preferred holders in the offer.
Holders must tender all of their securities as partial tenders will not be accepted.
The depositary is Wilmington Trust Co. (302 636-6181). The information agent is Laurel Hill Advisory Group, LLC (917 338-3181).
Greater Atlantic, located in Reston, Va., is the holding company for Greater Atlantic Bank.
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