UPDATE 1-Citizens Republic to raise capital; seek CAP funds

Thu Jun 25, 2009 11:24pm BST
[-] Text [+]

* 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...

 
CRBC.O
Last:
Change:
Up/Down:
 
by Name by Symbol