| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Tenders 2010 > News item |
Capitol Bancorp again extends trust preferred exchange, raises payout
By Marisa Wong
Madison, Wis., Sept. 23 - Capitol Bancorp Ltd. has once more extended 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 and amended the terms to make them more attractive, according to a news release.
The offer will now expire at 11:59 p.m. ET on Oct. 18, pushed back from Sept. 22. Previously, the offer had been scheduled to expire on Aug. 31 and before that July 24, extended from June 26. The offer began on May 28.
The company said again that it wanted to give holders adequate time to assess the offer.
As of the close of business on Sept. 22, investors had tendered 400,714, or 28%, of the 1,454,100 outstanding trust preferreds.
Due to current market conditions, Capitol Bancorp said it amended the exchange offer so that for each $10.00 liquidation amount of trust preferreds accepted the company will issue three common shares, rather than two shares as stated in the initial offering.
The company said it also extended the consent solicitation for the 8.5% cumulative trust preferreds due 2027 issued by Capital Trust I to 5 p.m. ET on Oct. 18. It was previously scheduled to expire at 5 p.m. ET on Sept. 22.
As of the close of business on Sept. 22, of the 2.53 million outstanding trust preferred securities of Capitol Trust I, holders of 502,456 of the preferreds had consented to the proposed amendment to the indenture and 502,390 had consented to the proposed amendment to the guarantee agreement.
Keefe, Bruyette & Woods, Inc. is the financial adviser for the exchange.
Capitol Bancorp is a Lansing, Mich., financial services provider with executive offices in Phoenix.
© 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.