Umpqua adds preferred stock for bank deal.Byline: ED RUSSO The Register-Guard CORRECTION (ran 10/02/02): Centennial Bank was founded in Springfield. An article in Tuesday's business section listed an incorrect city of origin. PORTLAND - The parent company of Umpqua Bank will sell 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. for the first time in its 49-year history, while completing its biggest acquisition yet. Portland-based Umpqua Holdings Corp. will issue $70 million in preferred stock, part of its plan to buy Centennial Bank in a stock and cash deal valued at $215 million. Centennial's headquarters are in Portland, but it was founded in Eugene and has six branches, 175 employees and major back office functions in Lane County. Umpqua will issue common stock to acquire 65 percent of Centennial's outstanding shares. Umpqua will use the preferred stock, plus another $11 million in cash to acquire the remaining 35 percent of Centennial's outstanding shares. The acquisition is expected to close on Nov. 15, Umpqua's Chief Financial Officer Dan Sullivan For other uses, see Dan Sullivan (disambiguation). Daniel "Dan" Sullivan was a fictional character in the popular BBC soap Opera EastEnders. He was played by Craig Fairbrass. said on Monday. Within the next few days, shareholders of both banks should receive proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other to approve the sale, he said. The main difference between preferred and common stock is that preferred stock pays dividends at a specified rate and has preference over the common stock in the payment of dividends and liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of assets. For example, preferred stockholders will receive quarterly dividends based on 5.3 percent annual interest, Sullivan said. Holders of Umpqua's common stock currently receive dividends of 4 cents a share. Preferred stock typically is bought by mutual funds, insurance companies, banks and other institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , Sullivan said. Umpqua said the preferred stock will be sold through three investment banking firms, Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. and Cos., Keefe Bruyette & Woods, and Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. . |
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