The First Bancshares, Inc. Announces Redemption of CDCI Preferred Stock & Establishment of Holding Company Line of Credit wit...
December 07 2016 - 5:59PM
Business Wire
The First Bancshares, Inc. (NASDAQ: FBMS), holding company for
The First, A National Banking Association, (www.thefirstbank.com)
announced that on December 6, 2016 the Company repurchased all
17,123 shares of its Cumulative, Perpetual Preferred Stock, Series
CD (“CDCI Preferred Stock”) issued to the U.S. Treasury in
connection with the Company’s participation in the Troubled Asset
Relief Program’s Community Development Capital Initiative. The CDCI
Preferred Stock was repurchased at fair market value $15,925,000
which equates to a discount of 7% to par, or $1,198,000.
In connection with the repurchase of the CDCI Preferred Stock,
the Company also entered into a loan agreement (the “Agreement”)
with First Tennessee Bank National Association (the “Lender”). The
Agreement provides for a $20 million revolving line of credit (the
“Line of Credit”), by the Lender to the Company. The maturity date
of the Agreement is December 5, 2017. Under the terms of the
Agreement, the Company is required to pay quarterly payments of
interest on the unpaid principal balance of the Line of Credit.
The interest rate on the Line of Credit is subject to change
from time to time based on changes in the London Interbank Offered
Rate of interest for an interest period of three (3) months (“LIBOR
Rate”). The initial interest rate to be applied to the unpaid
principal balance of the Note will be at a rate of two and 50/100
percent (2.50%) over the LIBOR Rate.
In connection with the Line of Credit, the Company executed a
negative pledge agreement with the Lender pursuant to which it
agreed not to pledge any capital stock of the Bank so long as any
indebtedness is outstanding under the Line of Credit.
The Agreement includes financial covenants and other
restrictions customary in financings of this nature. Outstanding
indebtedness under the Agreement can be accelerated by the Lender
upon the occurrence of customary events of default.
The First Bancshares, Inc., headquartered in Hattiesburg,
Mississippi, is the parent company of The First, A National Banking
Association. Founded in 1996, the First has operations in south
Mississippi, Louisiana and south Alabama. The Company’s stock is
traded on NASDAQ Global Market under the symbol FBMS. Information
is available on the Company’s website: www.thefirstbank.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161207006383/en/
The First Bancshares, Inc.M. Ray “Hoppy” Cole, Jr.,
601-268-8998CEOorDeeDee Lowery,
601-268-8998CFO
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