South Financial sets exchange ratio in offer for 10% convertibles

By Angela McDaniels

Tacoma, Wash., Sept. 17 - South Financial Group, Inc. said it will issue 230.154 shares of common stock in exchange for each share of its 10% mandatory convertible non-cumulative preferred stock accepted in its exchange offer.

When the offer began on Aug. 20, the company said it would issue 153.846 common shares plus a number of common shares equal to $131.25 divided by the average of the daily volume-weighted average per-share price of its common shares on each of the five consecutive trading days ended on Sept. 16, subject to a maximum exchange ratio of 241.346 common shares per preferred.

The average of the daily VWAP was $1.72, according to a company news release.

The series covered by the offer are the series 2008ND-V, 2008ND-NV, 2008D-V and 2008D-NV preferreds.

The offer will expire at 5 p.m. ET on Sept. 18.

South Financial said the successful completion of this offer will improve its capital structure by reducing its future preferred stock dividend payments and increasing its tangible common equity-to-tangible assets ratio.

Registrar & Transfer Co. (800 368-5948) is the exchange agent, and Altman Group (800 254-9280) is the information agent.

South Financial is a bank holding company based in Greenville, S.C.

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