New Issue: Provident Bankshares orchestrates $64.73 million private placement of shares

By Devika Patel

Knoxville, Tenn., April 10 - Provident Bankshares, Corp. said it has arranged a $64.73 million private placement of common stock and mandatory convertible preferred non-cumulative stock.

The company plans to sell 1,422,110 common shares at $9.50 per share for $13.51 million and 51,215 mandatory convertible preferred non-cumulative shares at $1,000 per share for $51,215,000.

The mandatory convertible preferred securities are convertible for three years into 4.9 million common shares and were priced with a fixed conversion price of $10.50 per share. The securities will bear a dividend rate of 10% for the three year term prior to mandatory conversion into common equity.

Baltimore, Md.-based Provident Bankshares is the holding company for Provident Bank.

Issuer:	Provident Bankshares, Corp.
Issue:	Common stock, mandatory convertible preferred non-cumulative stock
Amount:	$64,725,045
Pricing date:	April 11
Stock symbol:	Nasdaq: PBKS
Stock price:	$10.45 at close April 10
Common stock
Amount:	$13,510,045
Shares:	1,422,110
Price:	$9.50
Warrants:	No
Mandatory convertible preferred non-cumulative stock
Amount:	$51,215,000
Shares:	51,215
Price:	$1,000
Dividends:	10%
Conversion price:	$10.50
Warrants:	No

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