Capital Bank begins consent solicitation for contingent value rights

By Angela McDaniels

Tacoma, Wash., Feb. 5 – Capital Bank Financial Corp. is soliciting consents to redeem the contingent value rights issued to former shareholders of Southern Community Financial Corp. when it was acquired by the company on Oct. 1, 2012.

If consents are received from the holders of at least a majority of the CVRs outstanding, the company expects to amend the terms of the CVR agreement to allow it to redeem the remaining CVRs at any time prior to March 31 at $1.00 per CVR, according to a company news release.

The company is offering a consent fee of $0.03 per CVR.

The consent solicitation will end on Feb. 27.

Under the current terms of these CVRs, holders are entitled to receive up to $1.30 per CVR promptly following their Oct. 1, 2017 maturity date, dependent on the level of credit losses in a segment of the company's loan portfolio. Based on the level of credit losses to date, the company expects that, absent the early redemption, CVR holders are likely to receive the $1.30 per CVR maximum payment promptly following the maturity date.

The information agent and tabulation agent is Globic Advisors (contact Robert Stevens at 212-227-9699 or rstevens@globic.com).

Capital Bank Financial is the bank holding company for Capital Bank NA. It is based in Coral Gables, Fla.

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