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First Midwest ups share cap in exchange offers for 5.85%, 6.95% notes
By Jennifer Chiou
New York, Sept. 11 - First Midwest Bancorp, Inc. said it increased the maximum amount of shares to be issued in the exchange offers for any and all of its $100 million of 5.85% subordinated notes due 2016 as well as any and all of the $125 million liquidation amount of the 6.95% capital securities issued by First Midwest Capital Trust I.
The company will now issue a maximum of 4.5 million, up from 3.5 million, shares in the notes exchange offer.
For each $1,000 principal amount of 5.85% notes, First Midwest said it will issue a number of shares of its common stock equal to $850, plus an early tender premium of $50 for those who tender by the early deadline.
For each $1,000 liquidation amount of capital securities, First Midwest will issue a number of shares of its common stock equal to $750, plus an early tender premium of $50 for those who tender by the early deadline. The company said it will still issue no more than 7.5 million shares for the capital securities.
The Itasca, Ill.-based financial services company is offering newly issued common stock.
As already reported, the objective of the exchanges is to enhance the company's capital position by increasing its tier 1 common and tangible common equity ratios, while also reducing the dividend and interest expense associated with the debt securities.
The offers end at 11:59 p.m. ET on Sept. 24.
The early deadline is 5 p.m. ET on Sept. 10.
First Midwest said it will give preference to notes tendered in the early tender period if there is any proration.
The share price and the exchange ratios will be determined on Sept. 22.
D.F. King & Co., Inc. is the information and tender agent (888 886-4425 or call collect 212 269-5550).
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