TowneBank Announces Mandatory Conversion of 8% Subordinated Capital Notes, Due November 1, 2019
Hampton Roads based TowneBank (Nasdaq: TOWN) announced today the mandatory conversion of the entire $13,604,000 principal amount of its outstanding 8% Subordinated Capital Notes, due November 1, 2019.
The conversion will be in accordance with the indenture between TowneBank and U.S. Bank, National Association, as trustee. At the close of business on March 19, 2012, all outstanding Notes will be converted into shares of TowneBank common stock at the current conversion price of $13.38 per share. This is equal to a conversion rate of 149.48 shares per $2,000 principal amount of Notes, plus cash in lieu of any fractional shares.
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