UCFC Completes $39.9M Offering; Revises Rights
YOUNGSTOWN, Ohio -- United Community Financial Corp., holding company of The Home Savings and Loan Co., reported Friday that it has sold its previously announced $39.9 million in common and preferred shares to private investors in an offering.
The offering, announced on Jan. 15, was composed of $18.1 million of common shares and $21.8 million in preferred shares. In total, investors bought 6,574,272 newly issued common shares of UCFC at a $2.75 per share and 7,942 Series A preferred shares at $2,750 per share.
The president and CEO of UCFC and Home Savings, Patrick W. Bevack, said in a prepared statement, “The successful completion of the private offering is yet another major step forward for our company. This capital raise provides United Community and Home Savings with the capital we need to grow, raise our capital levels to levels commensurate with our risk profile and execute on our business plan.”
The private offering was the first of a series of transactions where UCFC intends to raise of $47.0 million in additional capital. As announced in January, UCFC has entered into subscription agreements to issue $2.1 million in common shares to its directors, officers and affiliates, and to commence a rights offering of $5.0 million to existing shareholders.
Both offerings will be at the same common share purchase price of $2.75 as the investors paid in the private offerings.
UCFC reaffirmed its intention to hold a special meeting of shareholders, when the board will seek shareholder approval of both the conversion of the convertible preferred shares into common shares and the purchase of common shares by the directors, officers and their affiliates. It did not set a date.
Shareholders of record as of March 21 are considered rights holders eligible to participate in the rights offering. On March 11, UCFC announced that all of those shareholders will receive, at no charge, the right to acquire 0.055 share of UCFC common stock shares for each common share held as March 21. Since then, the board has raised that ration to 0.6 share from 0.55 share.
Rights holders will also have the opportunity to purchase shares in excess of their basic subscription rights, subject to availability.
Final terms will be announced and the rights offering commence as soon as practicable after the U.S. Securities and Exchange Commission reviews the registration statement UCFC filed related to the offering last Friday.
Rights holders will receive instructions in the mail on how to participate just as they have all other shareholder materials, UCFC said.
Published by The Business Journal, Youngstown, Ohio.
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