Published:
Capitol Bancorp Limited Announces Pricing of $33.5 Million of Trust Preferred Securities
LANSING, Mich., andPHOENIX, July 1 /PRNewswire-FirstCall/ -- Capitol
Bancorp Limited (NYSE: CBC), today announced that on June 30, 2008, the
Corporation priced $33,500,000 aggregate liquidation amount of 10.5% Trust
Preferred Securities to be issued by Capitol Trust XII, a statutory trust
formed under the laws of theState of Delaware (the "Trust"), representing
preferred beneficial interests in the Trust (the "Trust Preferred Securities")
in an underwritten public offering at $10 per Trust Preferred Security. The
Trust has also granted the underwriters a 30-day option to purchase up to
502,500 of Trust Preferred Securities to cover over-allotments, if any. The
offering is scheduled to close on July 7, 2008.
Each Trust Preferred Security will pay cash distributions at the annual
rate of 10.5% of the stated liquidation amount of $10 per security, payable
quarterly in arrears beginning September 30, 2008. The maturity date of the
Trust Preferred Securities is June 30, 2038.
Capitol Bancorp's Chairman and CEO Joseph D. Reid said, "In what clearly
continues to be a turbulent and volatile market for the banking sector, we are
pleased to announce this non-equity capital raise that will serve to support
our continued organic growth while further strengthening the depth of our
resources during these uncertain times. We view this initiative as
dovetailing with our approach to have Capitol Bancorp possess an 'abundance of
caution' by incrementally augmenting our existing $700+ million in total
capital funds, while also positioning the Corporation to opportunistically
capitalize on business opportunities that inherently materialize in these kind
of markets." Added Reid, "We are impressed with the efforts and
professionalism of our underwriters, led byChicago-based Howe Barnes Hoefer &
Arnett, in seeing this offering to completion in this challenging market."
The managing underwriters (the "Underwriters") of the offering are Howe
Barnes Hoefer & Arnett; Keefe, Bruyette & Woods; and Sandler O'Neill &
Partners, L.P. A copy of the final prospectus relating to the offering may be
obtained from Howe Barnes Hoefer & Arnett, 222 South Riverside Plaza, Seventh
Floor,Chicago, Illinois 60606 or toll-free at 800-800-4693.
These Trust Preferred Securities have been registered under the Securities
Act of 1933, as amended, pursuant to an effective registration statement on
Form S-3 (File Nos. 333-151111 and 333-151111-04). Application has been made
to list the Capitol Trust XII Trust Preferred Securities on the New York Stock
Exchange.
This announcement shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such jurisdiction.
About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $5.1 billion national community
bank development company, with a network of 64 separately chartered banks in
17 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, andPhoenix, Arizona.
Forward Looking Statement
Certain statements in this announcement contain forward-looking statements
that are based on management's expectations, estimates, projections and
assumptions. Words such as "expects," "anticipates," "plans," "believes,"
"scheduled," "estimates" and variations of these words and similar expressions
are intended to identify forward-looking statements. Forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These statements are not
guarantees of future performance and involve certain risks and uncertainties,
which are difficult to predict. Therefore, actual future results and trends
may differ materially from what is forecast in forward-looking statements due
to a variety of factors.
All forward-looking statements speak only as of the date of this press
release. All subsequent written and oral forward-looking statements
attributable to the company or any person acting on the company's behalf are
qualified by the cautionary statements in this press release. The company does
not undertake any obligation to update or publicly release any revisions to
forward-looking statements to reflect events, circumstances or changes in
expectations after the date of this press release.
SOURCE Capitol Bancorp Limited
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Banking and Finance, michigan, arizona
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