Printer Friendly

FRANKLIN BANK PLANS TO REDEEM 12 PERCENT SUBORDINATED NOTES -- ISSUE NEW SECURITIES

 FRANKLIN BANK PLANS TO REDEEM 12 PERCENT SUBORDINATED NOTES --
 ISSUE NEW SECURITIES
 SOUTHFIELD, Mich., Oct. 15 /PRNewswire/ -- Franklin Bank's (NASDAQ: FSVB) Board of Directors today announced the bank plans to redeem all of its outstanding $7.3 million 12.0 percent subordinated notes due June 15, 2000. The redemption, subject to certain conditions, is expected to occur before Dec. 31, 1992.
 Franklin also announced plans to issue approximately $7.5 million of new 10-year term subordinated notes, the proceeds of which will pay off the existing notes. The redemption is dependent on the sale of the new subordinated notes. "Today's historically low interest rates present an unusually good economic opportunity to replace higher cost capital with less expensive capital," said Read P. Dunn, Franklin president and CEO.
 Franklin anticipates an annual net interest cost savings of approximately $300,000 by the refinancing. If consummated, Franklin will incur a one-time extraordinary charge to earnings of $770,000 in 1992. Subject to market conditions, Franklin also intends to offer up to 250,000 shares of common stock in conjunction with the subordinated note offering.
 Franklin has engaged First of Michigan Corporation to serve as the managing underwriter, with Hamilton Investments, Inc. serving as the co-manager for the offering of the subordinated notes and common stock.
 Redemption of the outstanding notes and issuance of the new notes is subject to review and approval by the Office of the Comptroller of the Currency (the "OCC"). The offering is also subject to OCC review. The offering is expected to be filed with the OCC in early November.
 This release is neither an offer to sell nor a solicitation of an offer to buy any of the securities. Any offering will only be made pursuant to an Offering Circular. There is no assurance as to when or if an offering will take place.
 Franklin Bank is headquartered in Southfield with three regional branches located in Southfield, Grosse Pointe Woods and Birmingham. Total assets are $410 million.
 -0- 10-15-92
 /CONTACT: Rebecca J. Christian or Lisa Aupperle, 313-358-1615, or outside Michigan, 800-356-8910, both of Franklin Bank/
 (FSVB) CO: Franklin Bank ST: Michigan IN: FIN SU: OFR


DC-SB -- DE006 -- 0290 10/15/92 09:57 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 15, 1992
Words:367
Previous Article:QUAKER ANTICIPATES HIGHER-THAN-EXPECTED RESULTS FOR THE FIRST QUARTER; COULD PROVIDE MODEST INCREASE FOR FULL YEAR
Next Article:INB FINANCIAL CORPORATION COMPLETES MERGER WITH NBD; ANNOUNCES THIRD QUARTER RESULTS
Topics:


Related Articles
REPUBLIC NEW YORK $100 MILLION SUBORDINATED NOTES RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
WARNACO ANNOUNCES COMPREHENSIVE RECAPITALIZATION
FRANKLIN BANK ANNOUNCES SECOND-QUARTER EARNINGS; NON-PERFORMING ASSETS DECLINE 34 PERCENT SINCE YEAR-END
FRANKLIN BANK SUCCESSFULLY COMPLETES SECURITIES OFFERING
FRANKLIN BANK 1992 FINANCIAL RESULTS
FRANKLIN BANK'S FIRST-QUARTER NET INCOME UP 44 PERCENT
Franklin Bank to Redeem 8.5% Subordinated Notes.
Franklin Bancorp, Inc. Announces Plan to Redeem Subsidiary's Preferred Stock.
Redemption of 8.00% Trust Preferred Securities of Chittenden Capital Trust I.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters