Deal offers stock at $0.10, series A convertible preferreds at $10.00
By Devika Patel
Knoxville, Tenn., April 11 – HCSB Financial Corp. settled a $45 million private placement of common stock and convertible preferred stock with Castle Creek Capital Partners VI, LP and other investors. The deal priced on March 2 and was conducted by agent Hovde Group, LLC.
The company sold 359,468,443 common shares at $0.10 apiece. The purchase price is a 71.43% discount to the March 24 closing share price of $0.35.
The investors also bought 905,315.57 series A convertible perpetual non-voting preferred stock at $10.00 per preferred.
Proceeds will be used to repurchase the company’s series T preferred stock, trust preferred securities and subordinated debt notes, to recapitalize the company’s bank subsidiary, Horry County State Bank, support its operations and increase capital ratios.
The holding company for Horry County State Bank is based in Loris, S.C.
| Issuer: | HCSB Financial Corp.
|
| Issue: | Common stock, series A convertible perpetual non-voting preferred stock
|
| Amount: | $45 million
|
| Warrants: | No
|
| Agent: | Hovde Group, LLC
|
| Investor: | Castle Creek Capital Partners VI, LP
|
| Pricing date: | March 2
|
| Settlement date: | April 11
|
| Stock symbol: | OTCBB: HCFB
|
| Stock price: | $0.35 at close March 1
|
|
|
| Common shares
|
| Amount: | $35,946,844
|
| Shares: | 359,468,443
|
| Price: | $0.10
|
|
|
| Preferreds
|
| Amount: | $9,053,156
|
| Preferreds: | 905,315.57
|
| Price: | $10.00
|
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