BankAtlantic further extends tender for 12 series of trust preferreds

By Angela McDaniels

Tacoma, Wash., April 22 - BankAtlantic Bancorp, Inc. said it extended its cash tender offer and consent solicitation for 12 series of non-publicly traded trust preferred securities totaling $230 million to 5 p.m. ET on May 20.

The offer began on Jan. 21 and was originally scheduled to end on Feb. 22 before being extended to March 22 and then April 21.

Affected securities include the following:

• $25 million of capital securities of BBX Capital Trust 2007 I;

• $5 million of floating-rate capital securities of BBX Capital Trust 2007 II;

• $25 million of floating-rate capital securities of BBC Capital Statutory Trust 2007 III;

• $25 million of floating-rate capital securities of BBC Capital Statutory Trust 2007 IV;

• $10 million of BBC Capital Trust V floating-rate preferred securities;

• $15 million of BBC Capital Trust VI floating-rate preferred securities;

• $25 million of floating-rate capital securities of BBC Capital Statutory Trust VII;

• $15 million of floating-rate trust preferred securities of BBC Capital Trust VIII;

• $10 million of floating-rate trust preferred securities of BBC Capital Trust IX;

• $50 million of fixed-/floating-rate capital securities of BBC Capital Statutory Trust X;

• $10 million of fixed-/floating-rate trust preferred securities of BBC Capital Trust XI; and

• $15 million of securities of BBC Capital Trust XII.

The company is offering $200 per $1,000 principal amount for all securities.

The company said it has received consents from the holders of more than two-thirds of the most-senior classes of notes issued by Preferred Term Securities IX, Inc. The consents direct the trustee of the issuer, Bank of New York Mellon, to accept the offer for $25.2 million principal amount of the fixed-/floating-rate capital securities of BBC Capital Statutory Trust X held by Preferred Term Securities IX.

BankAtlantic believes the consents received exceed the threshold required by the indenture to authorize Bank of New York Mellon to accept the offer for the trust preferreds, but Bank of New York Mellon has said it will not accept the tender offers in which it is involved without receiving a greater percentage of consents.

The company said it disagrees with Bank of New York Mellon's interpretation and intends to seek to pursue the acceptance of the tender offer by Preferred Term Securities IX based on the consents received.

Because each series of the trust preferreds is held as part of a larger pool of securities by one or more trustees, each trustee will not act until it believes it has the requisite authority from the ultimate beneficial holders.

Notwithstanding any consents received from beneficial holders, the company said no trustee has tendered any trust preferred to its knowledge as of 5 p.m. ET on April 21.

The tender offer is conditioned on the receipt of consents from enough holders to approve proposed amendments to the trust preferreds.

On Feb. 12, BankAtlantic filed an S-3 shelf registration statement registering up to $75 million of securities that it may issue from time to time in an effort to explore options for raising funds needed to satisfy the financing condition to the tender offer.

Hexagon Securities is the dealer manager for the offer.

BankAtlantic Bancorp is a Fort Lauderdale, Fla., bank holding company.

© 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.