By Devika Patel
Knoxville, Tenn., Sept. 25 - Virginia Commerce Bancorp, Inc. settled a $25 million private placement of its 10.2% trust preferred securities on Sept. 24, according to an 8-K filed Thursday with the Securities and Exchange Commission.
It also said it expects to complete another $25 million equity private placement by the end of October.
The company sold the preferreds at $1,000 apiece through subsidiary VCBI Capital Trust IV.
Investors also received warrants for 1.5 million common shares, which are exercisable at $6.83 until five years.
Proceeds were used by the trust to purchase $25.78 million of 10.2% fixed-rate junior subordinated debentures from the company.
Based in Arlington, Va., Virginia Commerce is the parent bank holding company of Virginia Commerce Bank.
| Issuer: | Virginia Commerce Bancorp, Inc.
|
| Issue: | Trust preferred securities
|
| Amount: | $25 million
|
| Price: | $1,000
|
| Dividends: | 10.2%
|
| Warrants: | For 1.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $6.83
|
| Settlement date: | Sept. 24
|
| Stock symbol: | Nasdaq: VCBI
|
| Stock price: | $5.99 at close Sept. 24
|
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