Midwest Banc plans $35 million convertible perpetual preferred stock; price talk not yet set

By Evan Weinberger

New York, Nov. 27 - Midwest Banc Holdings Inc. will sell $35 million in series A noncumulative redeemable convertible perpetual preferred stock, according to a preliminary prospectus filed with the Securities and Exchange Commission Wednesday.

The pricing date, dividend and conversion premium talk are still being discussed, a source close to the deal said.

Stifel Nicolaus, Friedman Billings Ramsey, Sterne, Agee & Leach, Inc. and Howe Barnes Hoefer & Arnett are the underwriters of the registered transaction, with Stifel Nicolaus as lead. There is a $5.25 million over-allotment option.

Midwest plans to issue 1.4 million shares of convertible preferreds, and the greenshoe is 210,000 shares.

The preferreds will be callable after five years subject to a 130% hurdle.

Midwest Banc 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.

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