Capitol Bancorp further extends 10.5% trust preferred exchange offer

By Jennifer Chiou

New York, July 23 - Capitol Bancorp Ltd. announced another extension to its offer to exchange up to 2,908,200 shares of its common stock for any and all of the outstanding 10.5% trust preferred securities of Capitol Trust XII.

The offer will now end at 12:59 a.m. ET on Sept. 1, prolonged from the same time on July 24. Before that, the offer was scheduled to end at 12:59 a.m. ET on June 26. It began on May 28.

The company attributed the extension to its desire to give holders adequate time to assess the offer.

As of the close of business on July 22, holders had tendered 86,909 of the 1,454,100 outstanding trust preferred securities.

For each $10.00 liquidation amount of the trust preferreds, the company will issue two common shares. No accrued interest will be paid in the offer.

Keefe, Bruyette & Woods, Inc. is Capitol's financial adviser in the exchange.

Capitol Bancorp is a Lansing, Mich., financial services provider with executive offices in Phoenix.

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