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MNC FINANCIAL, INC. RECEIVES $200 MILLION INVESTMENT FROM NATIONSBANK

MNC FINANCIAL, INC. RECEIVES $200 MILLION INVESTMENT FROM NATIONSBANK
 BALTIMORE, Sept. 28 /PRNewswire/ -- MNC Financial, Inc. (NYSE: MNC) today announced it has completed its previously announced investment transaction with NationsBank Corporation (NYSE: NB), resulting in the sale to NationsBank of $200 million of newly issued common equivalent securities of MNC.
 The securities are convertible into approximately 17 million shares of MNC common stock, providing an effective purchase price of $11.75 per MNC common share.
 "As a result of this investment, MNC's balance sheet and capital base will be enhanced significantly," said Frank P. Bramble, president and chief executive officer of MNC. The company said it will use most of the proceeds of the $200 million investment to improve the capital positions of MNC's subsidiary depository institutions.
 Under the terms of an option agreement, which was entered into by the two companies on July 17, NationsBank may elect to acquire MNC on or before Sept. 30, 1997, at a multiple of adjusted book value per share beginning at 125 percent this year and increasing by increments to 150 percent in 1996. In no event, however, will the purchase price be less than $14 per share if the merger occurs before Sept. 30, 1995, nor less than $15 thereafter. Consummation of the merger, if the option is exercised, will be subject to regulatory approvals and the approval of MNC stockholders.
 Additionally, MNC has been advised by the Federal Reserve Board that it has approved an extension to Dec. 31, 1994, of the period during which Alfred Lerner may remain as MNC's chairman of the board while serving as the chief executive officer of MBNA Corporation.
 -0- 9/28/92
 /CONTACT: Daniel G. Finney, senior vice president, Corporate Communications, 410-547-4038, or Charles L. Davis, vice president and director of Investor Relations, 410-547-4410, both of MNC Financial/
 (MNC) CO: MNC Financial, Inc.; NationsBank Corporation ST: Maryland IN: FIN SU:


MK -- PH029 -- 4070 09/28/92 16:20 EDT
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Publication:PR Newswire
Date:Sep 28, 1992
Words:325
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