News Column

Bank of the Carolinas Corporation Completes $45.8 Million Private Placement

August 2, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Bank of the Carolinas Corporation (the "Company") (OTCQB: BCAR) announced the successful completion of the private placement of 458,132,991 shares of newly issued common stock at a price of 10 cents per share to institutional and accredited investors. The Company intends to use the proceeds of the private placement to repurchase preferred stock and other obligations of the Company, and to restore its banking subsidiary to well-capitalized status.

The Company plans to use approximately $34.8 million of the proceeds from the private placement to inject new capital into its bank subsidiary, Bank of the Carolinas. After the capital infusion, the bank's regulatory leverage capital ratio is expected to be approximately 10%, which is considered well-capitalized. The new capital will satisfy a requirement of the consent order issued by the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks in 2011.

In connection with the private placement, the Company plans to repurchase all of its Series A Cumulative Perpetual Preferred Stock issued through the Troubled Asset Relief Program ("TARP") from the U.S. Treasury. The Company also plans to repurchase all of its Floating Rate Trust Preferred Securities and a subordinated note from the holders of those securities. Following the private placement and the planned repurchase of TARP, trust preferred securities and the subordinated note, Bank of the Carolinas Corporation would no longer have any preferred stock or debt obligations outstanding.

Stephen R. Talbert, Chief Executive Officer of the Company, commented, "The private placement is the culmination of four years of effort by many individuals working tirelessly on behalf of the Company. We are pleased that the capital raised in the private placement will enable Bank of the Carolinas to continue to fulfill its mission to provide banking services to the customers and communities it serves."

FIG Partners, LLC served as placement agent for the transaction, and The Hutchison Company served as the Company's financial advisor. Wyrick Robbins Yates & Ponton LLP acted as legal counsel to the Company, and Alston + Bird LLP acted as legal counsel to FIG Partners.

ABOUT BANK OF THE CAROLINAS CORPORATION

Bank of the Carolinas Corporation is the holding Company for Bank of the Carolinas, a North Carolina chartered bank headquartered in Mocksville, NC with offices in Advance, Asheboro, Concord, Harrisburg, Landis, Lexington and Winston-Salem. The common stock of the Company is quoted under the symbol "BCAR" on the OTCQB marketplace operated by OTC Markets Group Inc.

Keywords for this news article include: Bank of the Carolinas Corporation, Banking and Finance, Investment and Finance.

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Source: Investment Weekly News


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