New York, Aug. 1 - TowneBank upsized to $55 million from $25 million its offering of convertible non-cumulative preferred stock.
The Hampton Roads, Va.-based community bank said it was increasing the amount because of the "overwhelming" response of shareholders and members.
By 4 p.m. ET on Aug. 1, it had $43.4 million of subscriptions. TowneBank will continue to accept orders through the close of business on Aug. 8 or until it reaches the maximum size. That is an earlier close than the original deadline of Aug. 15.
The deal is priced at par with a dividend of 8%.
The issuer is making the preferreds available to current shareholders and depositors exclusively.
There was originally a $5 million greenshoe.
The stock is being issued at a par price of $100 per share and will be convertible at the option of the holder based on the minimum share price of $15 per share.
If the closing price of Towne common stock is more than $15 per share when the offering closes, then the conversion price will be adjusted to equal the higher closing price.
The preferreds are non-callable for three years and then provisionally callable for two years, subject to a 120% pricing hurdle, with forced conversion after five years.
| Issuer: | TowneBank
|
| Issue: | Convertible non-cumulative preferred stock
|
| Amount: | $55 million
|
| Preferred shares: | 250,000
|
| Maturity: | 2013
|
| Dividend: | 8%
|
| Price: | Par of $100
|
| Conversion price: | $15.00
|
| Calls: | Non-callable for three years and provisionally callable for two years at 120% hurdle
|
| Pricing date: | July 23
|
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