National Consumer Cooperative Bank pays final $29.7 million to satisfy two debt arrangements

By Lisa Kerner

Charlotte, N.C., Oct. 28 - National Consumer Cooperative Bank paid off the final $29.7 million in outstanding principal and accrued interest under two senior debt arrangements on Monday, more than seven weeks ahead of the final Dec. 15 maturity date, to reduce the interest expense that had been accruing at 13.5% under each facility, according to an 8-K filed with the Securities and Exchange Commission.

In February 2010, National Consumer and its wholly owned subsidiary, NCB Financial Corp., announced they had extended forbearance agreements with the holders of the bank's 8½% senior notes due Dec. 28, 2009 and 8½% senior notes due Dec. 15, 2010, providing for a final maturity date of Dec. 15.

National Consumer funded the senior debt repayment principally by asset sales and also through amortization and payments under its existing portfolio of loans and a $23 million structured financing of a $29 million loan pool, the filing said.

Since the fourth quarter of 2009, National Consumer has reduced its debt by $215.5 million, including the final payment.

National Consumer is a Washington, D.C.-based bank.

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