Capitol Bancorp Announces Capital Raising Initiatives That Add to Balance Sheet Strength
April 03 2007 - 7:00AM
PR Newswire (US)
Approximately $55 Million of Trust Preferred Securities Raised in
Pooled Offerings LANSING, Mich., and PHOENIX, April 3
/PRNewswire-FirstCall/ -- Today, Capitol Bancorp Limited (NYSE:CBC)
announced the issuance of $55 million of trust preferred securities
through two pooled trust preferred programs. On March 15, 2007,
approximately $35 million of trust preferred securities were
issued, structured with a 30-year term and callable at par after
five years, with a fixed rate of 6.55 percent for the first five
years, and thereafter with a floating distribution rate equal to
the 3-month LIBOR plus 1.65 percent. In addition, approximately $20
million of trust preferred securities were issued on March 22,
2007, also structured with a 30-year term and callable at par after
five years, with a floating rate priced at 3-month LIBOR plus 1.65
percent, and currently carrying a pre-tax cost of approximately 7
percent. The approximately $55 million of additional capital funds
will further strengthen the Corporation's capital position, and
will support the anticipated consolidated balance sheet growth
occurring at Capitol Bancorp's 51 affiliated community banks. The
funds will also be allocated for general corporate and working
capital purposes. On a pro forma basis as of December 31, 2006, the
$4.1 billion Capitol Bancorp now has total capital funds in excess
of $640 million. Commenting on this transaction, Capitol Bancorp
Chairman and CEO, Joseph D. Reid, said, "We view this transaction
as an opportunity to access capital in a favorable interest rate
environment and, in the process, augment our existing solid capital
base. These initiatives will provide us with additional resources
to proactively and efficiently react to growth opportunities."
Capitol Bancorp has opened two new community banks this year:
Sunrise Community Bank in Palm Desert, California, and Bank of
Tacoma in the state of Washington. Development activity is
currently underway in Arizona, California, Colorado, New York,
Oregon, Texas and Washington. During 2006, the Corporation opened
nine community banks. About Capitol Bancorp Limited Capitol Bancorp
Limited (NYSE:CBC) is a $4.1 billion national community bank
development company, with a network of more than 50 separately
chartered banks and bank operations in 14 states. It is the holder
of the most individual bank charters in the country. Capitol
Bancorp Limited identifies opportunities for the development of new
community banks, raises capital for and mentors new community banks
through their formative stages, and provides efficient services to
its growing network of community banks. Each community bank has
full local decision-making authority and is managed by an on-site
president under the direction of a local board of directors,
composed of business leaders from the bank's community. Founded in
1988, Capitol Bancorp Limited has executive offices in Lansing,
Michigan, and Phoenix, Arizona. Contact: Michael M. Moran Chief of
Capital Markets 877-884-5662 Joal Redmond Corporate Communications
602-977-3797 DATASOURCE: Capitol Bancorp Limited CONTACT: Michael
M. Moran, Chief of Capital Markets, 1-877-884-5662, or Joal
Redmond, Corporate Communications, +1-602-977-3797, both of Capitol
Bancorp Limited Web site: http://www.capitolbancorp.com/
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