By Devika Patel
Knoxville, Tenn., April 15 - Tompkins Financial Corp. said it plans to raise $15 million in a placement of 7% cumulative trust preferred securities. The deal was originally announced as a $15 million to $30 million regulation D offering on Feb. 4.
Tompkins Capital Trust I will issue the 15,000 preferreds at $1,000.00 apiece. The 30-year securities will be convertible into common stock at market prices in certain circumstances beginning in 2019.
Proceeds from the capital raising will be used to support business growth and for general corporate purposes.
Tompkins Financial is an Ithaca, N.Y.-based multibank holding company.
"We thought that price was actually good for our shareholders and good for our investors," Tompkins president and chief executive Stephen S. Romaine told Prospect News. "We believe it's an efficient form of capital."
Tompkins, which did not apply for capital under the U.S. government's Troubled Asset Repurchase Program, sees the preferreds as an opportunistic capital raise, Romaine said.
"One of the things we saw as the year finished in 2008, and what we expect to see in the horizon are some reasonable growth opportunities," he said. "The fourth-quarter loan growth was extraordinary, I think...there are many good, qualified borrowers that are displaced in the industry right now."
A stronger balance sheet will also be helpful if acquisition opportunities arise, Romaine said.
"We also think there are lots of opportunities to entertain the possibility of ongoing acquisitions," he said. "We're not acquisition driven, but we do them when all the pieces fit, and given all the stress in the industry, I suspect there will be a player or two looking to combine."
| Issuer: | Tompkins Capital Trust I (Tompkins Financial Corp.)
|
| Security description: | Trust preferred securities
|
| Amount: | $15 million
|
| Shares: | 15,000
|
| Price: | $1,000.00
|
| Maturity: | 30 years
|
| Warrants: | No
|
| Pricing date: | April 15
|
| Stock symbol: | Amex: TMP
|
| Stock price: | $43.20 at close April 14
|
| Market capitalization: | $413 million
|
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