Porter Bancorp, Inc. Completes Debt for Equity Exchange
October 01 2015 - 4:36PM
Business Wire
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank,
Inc., announced that on September 30, 2015, Porter Bancorp, Inc.
(“Porter” or the “Company”) completed a common equity for debt
exchange with holders of $4,000,000 of the capital securities (the
“Trust Securities”) of Porter Statutory Trust IV, a trust
subsidiary of Porter, with accrued and unpaid interest thereon of
approximately $330,000. In exchange for the $4.3 million debt and
interest liability, the Company issued 800,000 common shares and
400,000 non-voting common shares, for a total of 1,200,000 shares,
as described below.
The value received by Porter in this transaction was $3.61 per
share issued ($4,330,000 / 1,200,000 shares). The closing price of
Porter’s common stock was $1.40 per share on September 30, 2015.
The ten day trailing average closing price per share was $1.47 and
the twenty day trailing average closing price per share was $1.48.
The transaction is expected to save the Company approximately
$80,000 of interest expense over the next twelve months. Following
this transaction, Porter had 20,091,205 common shares and 6,858,000
non-voting common shares issued and outstanding at the close of
business on September 30, 2015. The transaction represents 16 cents
per share of tangible book value per share at September 30, 2015
($4,330,000 / 26,949,205 total shares issued and outstanding).
In the transaction, a wholly owned subsidiary of Porter acquired
a portion of the Trust Securities directly from a third party (the
“Holder”) in exchange for 400,000 common shares. W. Glenn Hogan
also purchased a portion of the Trust Securities from the Holder,
and transferred his purchased Trust Securities to the Porter
subsidiary in exchange for 400,000 common shares. In addition,
Patriot Financial Partners L.P. and its affiliate Patriot Financial
Partners Parallel L.P. (the “Patriot Funds”) purchased the
remaining Trust Securities from the Holder, and transferred their
purchased Trust Securities to the Porter subsidiary in exchange for
a total of 400,000 non-voting common shares. Mr. Hogan and the
general partner of the Patriot Funds, W. Kirk Wycoff, are each
directors of Porter.
About Porter Bancorp, Inc.
Porter Bancorp, Inc. (NASDAQ: PBIB) is a Louisville,
Kentucky-based bank holding company which operates banking centers
in 12 counties through its wholly-owned subsidiary PBI Bank. Our
markets include metropolitan Louisville in Jefferson County and the
surrounding counties of Henry and Bullitt, and extend south along
the Interstate 65 corridor. We serve southern and south central
Kentucky from banking centers in Butler, Green, Hart, Edmonson,
Barren, Warren, Ohio and Daviess counties. We also have a banking
center in Lexington, Kentucky, the second largest city in the
state. PBI Bank is a traditional community bank with a wide range
of personal and business banking products and services.
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. The words “believe,”
“may,” “should,” “anticipate,” “estimate,” “expect,” “intend,”
“objective,” “possible,” “seek,” “plan,” “strive” or similar words,
or negatives of these words, identify forward-looking statements.
These forward-looking statements are based on management’s current
expectations. Porter Bancorp’s actual results in future periods may
differ materially from those indicated by forward-looking
statements due to various risks and uncertainties, including our
ability to reduce our level of higher risk loans such as commercial
real estate and real estate development loans, reduce our level of
non-performing loans and other real estate owned, and increase net
interest income in a low interest rate environment, as well as our
need to increase capital. These and other risks and uncertainties
are described in greater detail 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
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version on businesswire.com: http://www.businesswire.com/news/home/20151001006879/en/
Porter Bancorp, Inc.John T. Taylor, 502-499-4800Chief Executive
Officer
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