New Issue: Tower seals $1.83 million private placement of convertible preferreds

By Devika Patel

Knoxville, Tenn., Sept. 28 - Tower Financial Corp. settled a $1.83 million private placement of its series A perpetual convertible preferred stock on Sept. 25, according to an 8-K filed Monday with the Securities and Exchange Commission.

The Fort Wayne, Ind., bank holding company sold 18,300 preferreds at $100.00 apiece.

The preferreds are convertible into common stock at $6.02 per share. Dividends accrue at an annualized rate of Prime plus 200 basis points.

The preferreds may be called at any time after Sept. 25, 2012 and until Sept. 24, 2013 at 110%, after Sept. 25, 2013 and until Sept. 24, 2014 at 105% and at par after Sept. 25, 2014.

Issuer:	Tower Financial Corp.
Issue:	Series A perpetual convertible preferred stock
Amount:	$1.83 million
Shares:	18,300
Price:	$100.00
Dividends:	Prime plus 200 bps
Conversion price:	$6.02
Call:	110% from Sept. 25, 2012 and until Sept. 24, 2013, 105% from Sept. 25, 2013 and until Sept. 24, 2014, par after Sept. 25, 2014
Warrants:	No
Settlement date:	Sept. 25
Stock symbol:	Nasdaq: TOFC
Stock price:	$4.63 at close Sept. 25
Market capitalization:	$19.4 million

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