Funds from brokered financing to be used as general corporate purposes
By Devika Patel
Knoxville, Tenn., Oct. 14 - Sierra Bancorp negotiated a registered direct offering of stock, according to a prospectus supplement filed Thursday with the Securities and Exchange Commission. Keefe, Bruyette & Woods, Inc. is the agent.
The company will raise $23.25 million to increase its capital and for general corporate purposes.
Sierra will sell 2,325,000 common shares at $10.00 apiece, a 22.48% discount to the Oct. 13 closing share price of $12.90.
Settlement is expected Oct. 19.
"We are very pleased at the investor response to our offering, and particularly with the quality of the investor group, which consists of institutional investors with exceptional reputations in the investment and financial communities," chief executive officer James C. Holly said in a press release.
In an interview with Prospect News, Holly went on to say that in the "immediate sense," the proceeds would be used to "bolster our capital in these uncertain times," and that in the long-term, the funds could be used for organic growth or possibly acquisitions.
Investors, he said, reacted well to the deal and Sierra therefore "got the intended and anticipated result." He said the placement agent "made a commendable effort" to bring in interested investors.
"It's a tense experience," he added.
On the back of the financing news, Sierra also released its third-quarter results, which showed net income of $887,000, or 8 cents per share.
For the prior year, income was $106,000, or a penny per share. Analysts polled by Thompson Reuters had expected earnings of 22 cents per share.
The bank holding company is based in Porterville, Calif.
Stephanie N. Rotondo contributed to this article
| Issuer: | Sierra Bancorp
|
| Issue: | Common shares
|
| Amount: | $23.25 million
|
| Shares: | 2,325,000
|
| Price: | $10.00
|
| Warrants: | No
|
| Agent: | Keefe, Bruyette & Woods, Inc
|
| Pricing date: | Oct. 14
|
| Settlement date: | Oct. 19
|
| Stock symbol: | Nasdaq: BSRR
|
| Stock price: | $12.90 at close Oct. 13
|
| Market capitalization: | $136.76 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
