Investor Corsair Capital to buy securities at $1.90 for a 22.5% stake
By Devika Patel
Knoxville, Tenn., March 16 - United Community Banks, Inc. said it arranged a private placement of common shares and mandatorily convertible preferred shares. The deal will raise $380 million, and Corsair Capital, LLC is among the investors.
The company will sell common shares at $1.90 apiece. It also will sell preferreds, which will mandatorily convert to common stock at $1.90 per common share once the company obtains approval for these shares. Upon conversion, Corsair will own 22.5% of the company's equity.
The price per share and conversion price is a 40.74% premium to the March 15 closing share price of $1.35.
The Blairsville, Ga.-based bank also said it plans to sell about $293 million of substandard and nonperforming loans in a series of bulk transactions during the second quarter of 2011. In addition, the bank plans to dispose of about $142 million of foreclosed properties during the second and third quarters.
| Issuer: | United Community Banks, Inc.
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| Issue: | Common shares, mandatorily convertible preferred shares
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| Amount: | $380 million
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| Warrants: | No
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| Investor: | Corsair Capital, LLC
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| Pricing date: | March 16
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| Stock symbol: | Nasdaq: UCBI
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| Stock price: | $1.53 at close March 16
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| Market capitalization: | $144.87 million
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|
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| Common shares
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| Price: | $1.90
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|
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| Preferred shares
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| Conversion price: | $1.90
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