CharterMac Completes Fourth Offering of CRA Preferred Shares in 2003.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 19, 2003 CharterMac (AMEX AMEX See: American Stock Exchange :CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) has completed the offering of 754,906 Series A Convertible Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. (the "CRA See Community Reinvestment Act. Preferred Shares") to two financial institutions through Meridian Investments, Inc. as placement agent. The public offering price was $19.87 per CRA Preferred Share, raising gross proceeds of approximately $15.0 million. The public offering price equaled the average closing price of CharterMac's common shares on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. for the 30 trading days ending on December 16, 2003. "CharterMac is extremely pleased to complete the Company's fourth offering of CRA Preferred Shares this year and to bring our 2003 gross proceeds from this unique equity security to approximately $107.5 million," commented Stuart Boesky, CharterMac's Chief Executive Officer. "CharterMac's CRA Preferred Shares continue to be an effective tool for the Company to attract high quality institutional ownership to our Company and to increase our investor base with minimal disruption to the trading pattern Trading pattern Long-range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period. of our common shares." Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this offering of approximately $14.3 million will be utilized primarily to acquire additional federally tax-exempt revenue bonds secured by mortgage loans on multifamily housing properties. Based upon an opinion of counsel, CharterMac believes that an investment in CRA Preferred Shares allows financial institutions to receive positive consideration and CRA credit under the Community Reinvestment Act ("CRA") "investment test." Through a proprietary allocation methodology developed by CharterMac, these financial institutions are able to trace their investment to specific affordable housing properties financed by CharterMac that are located in the financial institutions' self-defined geographic CRA assessment area. In addition to the allocation of CRA credit, the CRA Preferred Shares participate pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. with CharterMac's common shares in all distributions made on CharterMac's common shares and rank on parity with CharterMac's common shares with respect to rights upon liquidation, dissolution, or winding up. Shareholders of the CRA Preferred Shares have the ability to convert, at their option, their CRA Preferred Shares into CharterMac common shares on a one-to-one basis. Upon conversion, the shareholders of the CRA Preferred Shares will no longer be entitled to retain their CRA credit allocation. This communication 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 state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. A copy of the prospectus relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these securities may be obtained by contacting Meridian Investments, Inc. at: 1266 Furnace Brook Parkway, Quincy, Massachusetts, 02169, Attention: Jeff Jerrier. About the Company CharterMac is one of the nation's leading full-service multifamily finance companies, providing capital solutions to developers and owners of multifamily rental housing throughout the country. Collectively, the Company and its subsidiaries offer financing for every part of a multifamily property's capital structure. For more information, please visit CharterMac's website at http://www.chartermac.com or contact the Shareholder Services Department directly at (800) 831-4826. Certain statements in this press release may constitute forward-looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in CharterMac's prospectus supplement dated December 16, 2003, in connection with the offering of Convertible Community Reinvestment Act Preferred shares described above, and in its other filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. CharterMac expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in CharterMac's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion