Non-voting participating preferred stock sold to seven investors
By Devika Patel
Knoxville, Tenn., June 29 - Carver Bancorp, Inc. said it took in $55 million in a sale of its series C mandatorily convertible non-voting participating preferred stock with seven institutional investors.
The preferreds will automatically convert into a combination of common shares and series D convertible non-cumulative non-voting participating preferreds once the company receives the necessary approvals. The conversion price is $0.5451 per share, which is a 2.66% discount to the June 28 closing share price of $0.56.
The investors were Goldman Sachs Group, Inc., which invested $15 million; Morgan Stanley, which invested $15 million; Citigroup Inc., which invested $10 million; Prudential Insurance Co. of America, which invested $10 million; American Express Co., which invested $2 million; First Republic Bank, which invested $2 million, and National Community Investment Fund, which invested $1 million.
Keefe, Bruyette & Woods was the company's financial adviser, and Luse Gorman Pomerenk & Schick, PC was its legal adviser.
The company also said that it may conduct a common stock rights offering.
Carver Bancorp is a New York-based publicly traded African- and Caribbean-American run bank.
| Issuer: | Carver Bancorp, Inc.
|
| Issue: | Series C mandatorily convertible non-voting participating preferred stock
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| Amount: | $55 million
|
| Conversion price: | $0.5451
|
| Warrants: | No
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| Investors: | Goldman Sachs Group, Inc. (for $15 million); Morgan Stanley (for $15 million); Citigroup Inc. (for $10 million); Prudential Insurance Co. of America (for $10 million); American Express Co. (for $2 million); First Republic Bank (for $2 million) and National Community Investment Fund (for $1 million)
|
| Settlement date: | June 29
|
| Stock symbol: | Nasdaq: CARV
|
| Stock price: | $0.55 at close June 29
|
| Market capitalization: | $1.37 million
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