Banking & Finance

Independent Bank plans $86M public offering

August 19, 2013
| By Pete Daly |
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Ionia-based Independent Bank Corporation announced today that it is beginning an underwritten public offering of $86 million of its common stock.

The corporation will grant the underwriters a 30-day option to purchase up to an additional 15 percent of the shares sold, to cover over allotments, if any.

TARP payment

Independent Bank (NASDAQ: IBCP) said it intends to use the net proceeds to redeem all of the shares of its Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series B, including all accrued and unpaid dividends, and related Warrant, both issued to the U.S. Department of the Treasury under the Troubled Asset Relief Program Capital Purchase Program, for an aggregate payment of $81 million. That will meet the terms of the Securities Purchase Agreement made with the Treasury on July 26.

Independent Bank said it intends to use any remaining net proceeds for general corporate purposes.

Offering managers

Keefe, Bruyette & Woods, a Stifel company, is the sole book-running manager in the offering, with Sandler O'Neill + Partners and Boenning & Scattergood acting as co-managers.

The offering will be made under the Independent’s registration statement initially filed with the Securities and Exchange Commission on Aug. 9.

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