Monarch greenshoe exercised, bringing 7.8% convertibles to $20 million

By Marisa Wong

Milwaukee, Dec. 3 - Monarch Financial Holdings, Inc. announced that the underwriter for its offering announced in October of 7.8% non-cumulative convertible perpetual preferred stock exercised the $2.5 million over-allotment option in full. The offering was completed on Thursday for gross proceeds of $20 million, according to a news release.

The company issued a total of 800,000 preferreds at a price of $25.00 each, which includes 100,000 additional preferreds from the over-allotment option.

Monarch priced $17.5 million of the preferreds on Nov. 30 and concurrently increased the number of preferreds offered to 700,000 from 650,000.

"We are encouraged by the strong demand for this offering and our ability to sell 23% more shares than originally filed," Brad E. Schwartz, chief executive officer of Monarch Bank, said in the release.

Scott & Stringfellow, LLC was the underwriter.

The conversion ratio is 3.125 shares of common stock per preferred.

Proceeds will be used for general corporate purposes, including the possible redemption of the company's series A preferred stock and warrant issued to the U.S. Treasury as part of the Capital Purchase Program.

Chesapeake, Va.-based Monarch Financial is the bank holding company for Monarch Bank.

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