Waccamaw Bankshares to sell up to $10 million 7% three-year mandatory convertible preferreds

By Rebecca Melvin

New York, July 6 - Waccamaw Bankshares Inc. plans to price up to $10 million of mandatory convertible perpetual preferred stock to yield 7%, which will be offered together with warrants that will purchase one share of common stock at $5 per share for five years, according to an S-1 regulatory filing.

Waccamaw plans to offer 300,000 of the units through a rights offering to shareholders of record as of May 15, followed by a public offering of any remaining units plus 100,000 more, which are being sold via McKinnon & Co. investment bank, on a best-efforts basis.

The 400,000 of series B mandatories, with a liquidation amount of $25, will be mandatorily convertible after three years.

There is a greenshoe of $1.5 million of units.

Proceeds of the offering will be used to enhance the bank's capital ratios and support growth through lending, or to retire outstanding debt and to redeem securities, and for general corporate purposes.

After closing, the preferred stock and warrants will each be listed on the Nasdaq Global Market.

Based in Whiteville, N.C., Waccamaw Bankshares is the holding company for North Carolina community bank Waccamaw Bank.

As of March 31, Waccamaw had $560.3 million in assets, $376.4 million in loans and $441.6 million in deposits.

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