By Evan Weinberger
New York, Dec. 5 - Midwest Banc Holdings, Inc. priced an upsized $37.5 million in depository shares of series A noncumulative redeemable convertible perpetual preferred stock with a 7.75% dividend and a 20.579% initial conversion premium Wednesday. The deal was originally announced at $35 million.
Stifel Nicolaus is the bookrunner of the registered transaction.
There is an upsized $5.625 million over-allotment option. The greenshoe was originally announced at $5.25 million.
The settlement date is expected to be Dec. 10.
The conversion price is $15.
Each depository share is equal to 1/100 of a share of series A noncumulative redeemable convertible preferred perpetual stock.
Midwest has applied to the Nasdaq Global Market to list the depository shares under the ticker symbol "MBHIP."
The depository shares are callable beginning Dec. 10, 2012 subject to a 130% hurdle.
There is an optional conversion beginning Dec. 10, 2012 pending approval of the Federal Reserve Board.
Midwest is a Melrose Park, Ill.-based commercial bank. The company plans to use the proceeds to put capital into the holding company's banking subsidiary and to repay debt under the company's existing revolving credit facility.
Issuer: Midwest Banc Holdings, Inc.
Issue: Depository shares of series A noncumulative redeemable convertible perpetual preferred stock
Amount: $37.5 million
Greenshoe: $5.625 million
Maturity: Perpetual
Dividend: 7.75%
Price: Par
Yield: 7.75%
Conversion premium: 20.579%
Conversion price: $15
| Call: | Beginning Dec. 10, 2012 subject to 130% hurdle
|
| Optional conversion: | Beginning Dec. 10, 2012 pending approval by Federal Reserve Board
|
| Bookrunner: | Stifel Nicolaus
|
| Distribution: | Registered
|
| Pricing date: | Dec. 5
|
| Settlement date: | Dec. 10
|
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