Commerce Bancorp to redeem all $200 million 5.95% convertible trust preferreds

By Jennifer Chiou

New York, Aug. 15 - Commerce Bancorp, Inc. announced the redemption of all $200 million of its 5.95% convertible trust preferred securities, which were issued by Commerce Capital Trust II.

The Cherry Hill, N.J., multi-bank holding company said holders can receive $50.00 plus accrued interest for each trust preferred or convert them into 1.8956 shares of Commerce Bancorp stock before the Sept. 14 redemption date. The company's stock closed down $0.06 at $35.20 on Monday.

Those who redeem their trust preferreds will receive an interest payment of $0.74375.

Investors who wish to convert their holdings should notify Bank of New York, the conversion agent.

Chairman and chief executive officer Vernon W. Hill noted original purchasers who convert will have received an annual compounded return on their investment in excess of 13.6%.

After the redemption, the company will also have no long-term debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.