Published on 3/17/2011 in the Prospect News PIPE Daily.
United Community details $380 million placement of stock, preferreds
Investor Corsair Capital buying securities at $1.90 for a 22.5% stake
By Devika Patel
Knoxville, Tenn., March 17 - United Community Banks, Inc. offered further details concerning a private placement of common shares and mandatorily convertible preferred shares in an 8-K filed Wednesday with the Securities and Exchange Commission. The deal priced for $380 million on Wednesday; Corsair Capital, LLC is among the investors.
The company is selling 17,338,497 common shares at $1.90 apiece for $32.94 million. It also is selling $195.87 million of series F preferreds and $151.19 million of series G preferreds.
Both series of preferreds will mandatorily convert to common stock at $1.90 per common share once the company obtains approval for these shares. The series F preferreds will convert to 103,090,506 shares and the series G preferreds will convert to 79,570,997 shares. Upon conversion, Corsair will own 22.5% of the company's equity.
The price per share and conversion price is a 40.74% premium to the March 15 closing share price of $1.35.
The bank is based in Blairsville, Ga. It also said on Wednesday that it plans to sell about $293 million of substandard and nonperforming loans in a series of bulk transactions during the second quarter. The bank also plans to dispose of about $142 million of foreclosed properties during the second and third quarters.
| Issuer: | United Community Banks, Inc.
|
| Issue: | Common shares, mandatorily convertible preferred shares
|
| Amount: | $380 million
|
| Warrants: | No
|
| Investor: | Corsair Capital, LLC
|
| Pricing date: | March 16
|
| Stock symbol: | Nasdaq: UCBI
|
| Stock price: | $1.53 at close March 16
|
| Market capitalization: | $184.64 million
|
|
|
| Common shares
|
| Amount: | $32,943,144
|
| Shares: | 17,338,497
|
| Price: | $1.90
|
|
|
| Series F preferred shares
|
| Amount: | $195,871,961
|
| Conversion price: | $1.90
|
| Conversion ratio: | Into 103,090,506 shares
|
|
|
| Series G preferred shares
|
| Amount: | $151,184,894
|
| Conversion price: | $1.90
|
| Conversion ratio: | Into 79,570,997 shares
|
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