Independent Bank gets tenders for $18.3 million of trust preferreds in exchange offer so far

By Angela McDaniels

Tacoma, Wash., June 4 - Independent Bank Corp. said holders had tendered 731,862 trust preferred securities issued by IBC Capital Finance II in its exchange offer as of 4 p.m. ET on June 4.

The liquidation amount of the tendered securities is $18.3 million, according to a company news release.

At May 27, holders had tendered $7.5 million of trust preferreds for exchange.

As previously reported, the company is offering up to 180.2 million new shares of common stock in exchange for the following series of trust preferred securities:

• $50.6 million liquidation amount of 8.25% cumulative trust preferreds issued by IBC Capital Finance II. The total exchange value for these is $22.65 per $25.00 trust preferred;

• $12 million liquidation amount of floating-rate trust preferreds issued by IBC Capital Finance III. The total exchange value is $861.11 per $1,000 trust preferred;

• $20 million liquidation amount of floating-rate trust preferreds issued by IBC Capital Finance IV. The total exchange value is $864.54 per $1,000 trust preferred; and

• $7.5 million liquidation amount of floating-rate trust preferreds issued by Midwest Guaranty Trust I. The total exchange value is $871.26 per $1,000 trust preferred.

Holders will receive a number of common shares per trust preferred with a dollar value equal to the total exchange amount noted for that series.

The offer will expire at 11:59 p.m. ET on June 22. The deadline was previously extended from June 1.

When the offer began on April 23, the company was offering an early tender premium for trust preferreds tendered by May 17. This early deadline was later extended to coincide with the offer deadline, meaning all holders who tender will receive the early tender premium.

The early tender premiums of $1.25 per 8.25% trust preferred and $50.00 per floating-rate trust preferred are included in the total exchange values noted above.

The company said that it believes a high level of participation from its holders is critical to its capital restoration plan.

Independent Bank added that it continues to exercise its right to defer quarterly payments on all of the trust preferreds and does not anticipate resuming the payments at any time in the near future, regardless of the level of participation in the exchange offer.

The information agent is D.F. King & Co., Inc. (bankers and brokers call collect at 212 269-5550, others call 800 431-9643).

Independent Bank is an Ionia, Mich.-based bank holding company.

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