Capitol Bancorp Extends Deadline And Increases Consideration For Capitol Trust XII Exchange Offer
LANSING, Mich., and PHOENIX, Sept. 23 /PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE: CBC) (the "Corporation") today announced that it has extended its pending offer to exchange up to 2,908,200 shares of its common stock, no par value per share, for any and all of its outstanding 10.50% trust preferred securities (the "Trust Preferred Securities") of Capitol Trust XII, a statutory trust formed under the laws of the State of Delaware. The offer commenced on May 28, 2010.
The exchange offer was previously scheduled to expire at 11:59 p.m., Michigan time, on September 22, 2010, and has been extended until 11:59 p.m., Michigan time, on October 18, 2010, in order to give holders of the Trust Preferred Securities adequate time and opportunity to assess the proposed transaction and if necessary, to complete the appropriate documentation associated with the exchange. As of the close of business on September 22, 2010, of the 1,454,100 outstanding trust preferred securities of Capitol Trust XII, 400,714 (approximately 28 percent) had been tendered. Due to current market conditions, the exchange offer has been amended so that for each $10.00 liquidation amount of Trust Preferred Securities accepted in the exchange offer, Capitol will issue 3 shares of its common stock, rather than 2 shares as stated in the initial offering.
Capitol also announced that it has extended the Consent Solicitation relating to amendments to certain provisions of the Indenture, dated as of December 18, 1997, as supplemented by the First Supplemental Indenture, dated as of July 31, 2009, by and between Capitol and The Bank of New York Mellon Trust Company, N.A., as trustee, and to the Guarantee Agreement dated as of December 17, 1997 by and between Capitol and the Trustee, as amended on July 31, 2009 pursuant to which the 8.50% Cumulative Trust Preferred Securities due 2027 of Capitol Trust I, a Delaware statutory trust, were issued, upon the terms and subject to the conditions set out in the Consent Solicitation Statement. The Consent Solicitation was previously scheduled to expire at 5:00 p.m., Michigan time on September 22, 2010, and has been extended until 5:00 p.m., Michigan time on October 18, 2010. As of the close of business on September 22, 2010, of the 2,530,000 outstanding trust preferred securities of Capitol Trust I, 502,456 had consented for the proposed amendment to the Indenture and 502,390 had consented for the proposed amendment to the Guarantee Agreement.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities. Solicitation of offers to exchange shares of the Trust Preferred Securities will only be made pursuant to the Offering Memorandum distributed by the Corporation.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV