Porter Bancorp, Inc. Completes $27.0 Million Stock Offering
June 30 2010 - 6:39PM
Business Wire
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank,
announced today that it completed a $27.0 million stock offering in
a private placement to select institutional accredited investors.
The private placement included the sale of $20.2 million in common
stock and $6.8 million of convertible preferred stock at a price of
$11.50 per share. The proceeds of the offering will be used for
working capital, general corporate purposes and for augmenting the
balance sheet, including increasing the capital of PBI Bank.
Sandler O’Neill + Partners, L.P. served as the exclusive placement
agent to Porter Bancorp, Inc.
“We are pleased to complete the $27.0 million stock offering as
part of our strategy to strengthen our capital base,” stated Maria
L. Bouvette, President and CEO of Porter Bancorp, Inc. “The new
capital will be an important part of supporting our continued
growth while providing a solid increase in our regulatory
capital.”
Private Placement Terms
The private placement totaled $27.0 million and included the
sale of 1,755,745 shares of Common Stock at $11.50 per share,
227,000 shares of Series B Mandatory Convertible Preferred Stock at
$11.50 per share, and 365,080 shares of Series C Convertible
Preferred Stock at $11.50 per share. The Preferred Stock is
convertible into Common Stock on a share-for-share basis. In
addition, the Company issued 1,169,914 Warrants that are
convertible into non-voting Common Stock at a exercise price of
$11.50 per share.
The Series B Preferred Stock converts into common stock only
when approved by Porter shareholders, in accordance with NASDAQ
Rule 5635, which requires shareholder approval when the total
number of common shares sold in a private placement would exceed
20% of the Company’s outstanding common shares. J. Chester Porter,
Chairman of the Board of Porter Bancorp, and Maria Bouvette,
President and CEO of Porter Bancorp, the Company’s principal
shareholders, have agreed to vote in favor of the conversion. The
Company expects to submit the proposal for shareholder approval
during the third quarter of 2010.
Patriot Financial Partners, L.P., the lead investor in the
private placement, would hold 9.9% of the voting common shares
outstanding following conversion of the Series B Preferred Stock.
The lead investor also purchased 365,080 shares of Series C
Convertible Preferred Stock, a series of non-voting common
equivalent shares.
As part of the private placement, the lead investor was granted
the right to appoint a director to the boards of Porter Bancorp and
PBI Bank and pre-emptive rights on future capital raises, as long
as it continues to own at least 4.9% of the outstanding common
shares of the Company. Porter also agreed to certain changes to its
dividend policy. More detailed information regarding the private
placement will be included in the Company’s 8-K filing with the
Securities and Exchange Commission.
About Porter Bancorp, Inc.
Porter Bancorp, Inc., a bank holding company headquartered in
Louisville, Kentucky, had $1.7 billion in assets as of March
31, 2010. Through Porter’s subsidiary PBI Bank, it operates 18 full
service banking offices in Kentucky. Porter Bancorp’s common stock
is traded on the Nasdaq Global Market under the symbol “PBIB.”
About Patriot Financial Partners
Patriot Financial Partners, L.P. is a private equity fund
focused on investing in community banks, thrifts and other
financial service related companies. The Fund is long only with a
value oriented, buy and hold strategy. To learn more about Patriot
Financial Partners, L.P., visit
www.patriotfinancialpartners.com.
Forward-Looking Statements
Statements in this press release relating to Porter Bancorp’s
plans, objectives, expectations or future performance are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations. Porter
Bancorp’s actual results in future periods may differ materially
from those currently expected due to various risks and
uncertainties, including those discussed under “Risk Factors” in
the Company’s Form 10-K and subsequent periodic reports filed with
the Securities and Exchange Commission. The forward-looking
statements in this press release are made as of the date of the
release and Porter Bancorp does not assume any responsibility to
update these statements.
PBIB-G
Porter Bancorp, Inc. (delisted) (NASDAQ:PBIB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Porter Bancorp, Inc. (delisted) (NASDAQ:PBIB)
Historical Stock Chart
From Jul 2023 to Jul 2024