Guaranty Financial Group to get $38.4 million boost from TRT Financial Holdings

By Lisa Kerner

Charlotte, N.C., May 27 - Robert Rowling, chairman of TRT Financial Holdings, LLC, agreed to acquire 7.4 million authorized but unissued shares of Guaranty Financial Group Inc. common stock at $5.17 per share, or about $38.4 million.

The May 26 investment agreement was reported in a form 8-K filing with the Securities and Exchange Commission.

Guaranty had 37.3 million shares of common stock issued and outstanding at March 31, according to a company news release.

Within 120 days of the initial purchase, Rowling will purchase from Guaranty a series of Guaranty convertible preferred stock giving Rowling ownership of 19.9% of Guaranty's total outstanding common stock, assuming full conversion.

Guaranty president and chief financial officer Ken Dubuque said the investment, along with a previously announced rights offering, will enable Guaranty to fortify its balance sheet and support the company's long-term growth.

TRT Financial, a privately owned holding company, and Guaranty expect to close the transaction on June 2.

A registration statement relating to the securities offered in the rights offering has been filed with the SEC but is not yet effective, according to the form 8-K filing.

Guaranty is a publicly traded financial institution based in Austin, Texas.

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