South Financial Group holders tender 95% of 10% convertible preferreds

By Angela McDaniels

Tacoma, Wash., Sept. 21 - South Financial Group, Inc. said it received $90,876,000 liquidation preference, or 95%, of its 10% mandatory convertible non-cumulative preferred stock during an exchange offer that expired at 5 p.m. ET on Sept. 18.

Four series of preferreds were eligible for exchange: 2008ND-V, 2008ND-NV, 2008D-V and 2008D-NV.

Holders will receive 230.154 shares of common stock in exchange for each preferred accepted in the offer.

The exchange ratio is 153.846 common shares plus a number of common shares equal to $131.25 divided by $1.72, the average of the daily volume-weighted average per-share price of South Financial's common shares on the five consecutive trading days that ended on Sept. 16.

The company said it will issue about 20.9 million shares in the offer, which will generate, net of costs, approximately $90 million in tier 1 common capital.

Following settlement of the offer, $4.65 million liquidation preference of the preferreds will remain outstanding.

Registrar & Transfer Co. (800 368-5948) was the exchange agent, and Altman Group (800 254-9280) was the information agent.

South Financial is a bank holding company based in Greenville, S.C.

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