Patapsco Bancorp, Inc. to Call All Preferred Stock for Redemption or Conversion.BALTIMORE -- Patapsco Bancorp, Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :PATD PATD Panic at the Disco (band) PATD Professional Association for Technical Diving PaTD Passing Touchdowns (football) PATD Post Advanced Trial Dog (dog training) ) announced today that its Board of Directors has voted to call for redemption all outstanding shares of Series A Non-cumulative, Perpetual Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , par value $0.01 per share (the "Series A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. "), that have not been converted into common stock at the election of the holders and remain outstanding on or prior to the close of business on March 31, 2006 (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. "). All shares of Series A Preferred Stock not converted into shares of Patapsco Bancorp, Inc. common stock prior to the close of business on the Redemption Date will be automatically redeemed. Prior to the Redemption Date, holders of Series A Preferred Stock may elect to convert such shares into shares of Patapsco Bancorp, Inc. common stock at a rate of 3.993 shares of common stock for each share of Series A Preferred Stock, which, based on the most recent sales price for Patapsco Bancorp, Inc. common stock of $11.00 per share, would amount to a value of $43.92 per share. In accordance with the terms of the Series A Preferred Stock, all shares of Series A Preferred Stock not converted prior to the close of business on the Redemption Date will be redeemed by the Company in exchange for a cash payment of $25.00 per share plus all accrued and unpaid dividends on the Series A Preferred Stock for the quarter ending March 31, 2006. From and after the Redemption Date, dividends on the Series A Preferred Stock will cease to accrue and the Series A Preferred Stock will no longer be deemed outstanding. If all holders were to elect to convert their shares, a total of 341,525 shares of common stock would be issued. Patapsco Bancorp, Inc. currently has approximately 1,468,011 shares of common stock outstanding. Patapsco Bancorp, Inc. will be sending a notice of redemption to the registered holders of the Series A Preferred Stock, including a letter of transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. to be used in surrendering certificates for conversion or redemption. Patapsco Bancorp, Inc. is the holding company for The Patapsco Bank, which serves Baltimore County and the surrounding communities, including lending efforts in Harford and Cecil Counties, Maryland, from its main office located at 1301 Merritt Boulevard, Dundalk, Maryland Dundalk is an unincorporated community and a census-designated place in Baltimore County, Maryland, United States. The population was 62,306 at the 2000 census. In 1960 and 1970, Dundalk was the largest unincorporated community in Maryland. and its four branch offices located in Baltimore County and Baltimore City. |
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