By Rebecca Melvin
New York, Aug. 27 - TowneBank upsized to $59.8 million from $55 million its offering of convertible non-cumulative preferred stock, which was well above the original maximum offering amount of $25 million.
The Hampton Road, Va.-based community bank also announced that its board approved a conversion price for the preferred stock of $18.56, the closing price of the common stock on Tuesday, which was above the $15 conversion price set earlier, according to a release.
The deal was first announced July 24.
The conversion price equals 5.388 shares of common stock for each share of preferred stock. Since the offering was over-subscribed by the bank's shareholders and members, it was not made available to the general public.
The preferred stock will pay a non-cumulative dividend of 8% per year.
The stock is non-callable for three years, and then provisionally callable for two years, subject to a 120% pricing hurdle, with forced conversion after five years.
The offering is closed and no further shares will be sold in this issue.
| Issuer: | TowneBank
|
| Issue: | Convertible non-cumulative preferred stock
|
| Amount: | $59.8 million, upsized from $25 million
|
| Maturity: | 2013
|
| Dividend: | 8%
|
| Price: | Par, of $100 per share
|
| Yield: | 8%
|
| Conversion price: | $18.56, increased from $15
|
| Calls: | Non callable for three years, and provisionally callable for two years at 120% hurdle
|
| Stock symbol: | Nasdaq: TOWN
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