Heritage Commerce to redeem $9 million of its floating-rate debentures

By Tali David

Minneapolis, June 14 - Heritage Commerce Corp. plans to redeem $5 million of its floating-rate junior subordinated debentures due July 31, 2031 issued to Heritage Statutory Trust II and $4 million of its floating-rate junior subordinated debentures due Sept. 26, 2032 issued to Heritage Statutory Trust III, according to an 8-K filed with the Securities and Exchange Commission.

The notes due 2031 will be redeemed on July 31, and the notes due 2032 will be redeemed on Sept. 26.

Heritage will also pay the regularly scheduled interest payments on the debentures on the respective redemption dates.

The company will use available cash and proceeds from a $9 million distribution from its banking subsidiary, Heritage Bank of Commerce, for the redemption, the filing said.

In addition, on June 12, Heritage completed the repurchase of the common stock warrant issued to the U.S. Department of the Treasury on Nov. 21, 2008, which was exercisable into 462,963 shares of common stock at an exercise price of $12.96. The company repurchased the warrant for $140,000.

Heritage is a San Jose, Calif.-based bank holding company.

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