New Issue: American Bank sells $10.2 million convertible trust preferreds at 6%, up 4%

New York, April 8 - American Bank Inc. said it completed a sale of $10.2 million convertible trust preferred securities with a distribution of 6% and an initial conversion premium of 4% - although thanks to a rise in the company's stock since pricing the convertibles are already in the money.

The Allentown, Pa. bank holding company sold the securities itself on a best-efforts basis to its existing shareholders.

Of the total 1.2 million shares sold, American Bank said its executives and directors anticipated buying 825,000.

Issuer:	American Capital Trust I
Amount:	$10.2 million (1.2 million shares)
Maturity:	March 31, 2032
Distribution:	6%, payable quarterly
Price:	Par of $8.50
Initial conversion premium:	4% over $8.17 stock price on Feb. 14
Conversion ratio:	1
Call:	March 31, 2007

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