Centennial Bancorp calls debentures.EUGENE, Ore.--(BUSINESS WIRE)--Nov. 13, 1996--Centennial Bancorp announced today that it had elected to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. all its 7 percent Convertible Exchangeable Redeemable Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before due May 1, 2004, (the "debentures") that are outstanding at the close of business on Dec. 23, 1996. Bancorp will redeem all such debentures at a price of 102 percent of the principal amount of the debentures, plus all accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. but unpaid interest through the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . The debentures may be converted into Bancorp common stock at the option of the holder at any time before the close of business on the redemption date. Debentures currently are convertible at a price of $9.816 per share. At Nov. 12, 1996, the last sales price of the common stock reported by Nasdaq was $14.00 per share. Given the differential between the conversion price of the debentures and the trading price Trading price The price at which a security is currently selling. of the common stock, Bancorp anticipates that all or most of the debentures will be converted into common stock. If all of the debentures are converted, as anticipated, approximately 947,400 shares of Centennial Bancorp stock would be issued to bring the total outstanding common shares to approximately 6,131,000. Centennial Bancorp is headquartered in Eugene and has two subsidiaries. Centennial Bank provides commercial financing, banking and other services through six branches located in Eugene, Springfield, Tigard and Cottage Grove Cottage Grove, village (1990 pop. 22,935), Washington co., SE Minn., near the St. Croix River; inc. 1965. There is farming (cattle, sheep, corn, and soybeans) and manufacturing (chemicals and machinery). , Ore. Centennial Mortgage Co. originates residential loans for sale in the secondary market. -0- Richard C. Williams President & Chief Executive Officer CONTACT: Centennial Bancorp, Eugene Richard C. Williams or Michael J. Nysingh, 541/342-3970 |
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