River Valley calls all 7.5% preferreds ahead of dividend increase

By Marisa Wong

Madison, Wis., Dec. 15 – River Valley Bancorp announced it will redeem all of its outstanding 5,000 shares of fixed-rate cumulative perpetual preferred stock, series A, for $5 million.

The corporation’s president and chief executive officer, Matthew P. Forrester, said in a press release, “We are using some of the proceeds of our recent common stock public offering to redeem the series A preferreds before dividends increase to 9% per year. We are very pleased with this opportunity to replace the more expensive preferred stock financing with common equity capital.”

The series A preferreds were paying dividends at 7.5% per year, but those dividends would have increased to 9% per year on Dec. 15, the issuer said.

The series A preferreds were issued in a private placement on Nov. 19, 2009.

The bank is based in Madison, Ind.

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