MainStreet Bancshares greenshoe ups 7.5% preferreds to $28.75 million

By Rebecca Melvin

New York, Sept. 25 – The underwriters of MainStreet Bancshares Inc.’s recent offering of $25 million, or 1 million shares, of 7.5% series A fixed-rate non-cumulative perpetual preferred stock exercised their greenshoe in full, increasing the total size of the issuance to $28.75 million, according to an 8-K filing with the Securities and Exchange Commission.

The greenshoe was for 150,000 shares, or $3.75 million.

As previously reported, the company priced $25 million of the preferreds on Sept. 10.

B. Riley Securities, Inc., Boenning & Scattergood, Inc., D.A. Davidson & Co. and Janney Montgomery Scott LLC were the bookrunners.

Dividends are payable on March 30, June 30, Sept. 30 and Dec. 30.

The preferreds are redeemable on or after Sept. 30, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

MainStreet plans to use the proceeds for general corporate purposes, which may include repurchases of outstanding common stock, working capital and the funding of organic growth of MainStreet Bank, or potential acquisitions.

The company plans to list the preferreds on the Nasdaq under the symbol “MNSBP.”

MainStreet is a Fairfax, Va.-based bank holding company.

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