UPDATE 1-Citizens Republic to raise capital; seek CAP funds
* To exchange debt for common stock
* To seek $290 mln from U.S. Treasury
* To take charge of about $270 mln in Q2
* To raise authorized common stock to 1.05 bln shares
June 25 (Reuters) - Citizens Republic Bancorp Inc (CRBC.O: Quote, Profile, Research) said it is planning to raise capital in a variety of ways, including new common stock offerings, exchanging shares for debt and seeking up to an additional $290 million from the U.S. Treasury.
The Midwestern bank said it intends to convert up to $125 million of certain debentures, as well as trust preferred securities worth $150 million at liquidation, into common stock.
The financial services company said it is also looking at an investment of $190 million in U.S. Treasury funding and up to an additional $100 million under the Capital Assistance Program which would be used to redeem a portion of the outstanding preferred stock issued to the Treasury in 2008.
Last year, Citizens Republic had received an investment of $300 million from the U.S. Treasury under the Troubled Asset Relief Program.
The company, which lost two-thirds of its market value in the last six months, also said it expects to take a non-cash goodwill impairment charge of about $270 million in the second quarter. Continued...
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