Enterprise Financial (EFSC) to Add $60 Million in Capital

December 12, 2008 3:28 PM EST

Enterprise Financial Services Corp (Nasdaq: EFSC) announced that it has completed the private placement of convertible trust preferred securities totaling $25 million with two institutional investors.

The convertible trust preferred securities qualify as Tier I regulatory capital subject to certain limitations. The securities, which have a coupon of 9%, mature in 30 years and are callable by the Company after 5 years. The trust preferred securities are convertible to EFSC common stock at $17.37 per share, which represents 110% of the average closing price for EFSC stock for the five trading days following the Company's third quarter earnings press release on October 23, 2008. After December 12, 2010, EFSC may terminate the conversion rights, subject to certain limitations, if the price per share of EFSC common stock exceeds $22.58 for twenty consecutive trading days.

In a related announcement, the Company reported that it has obtained preliminary approval to participate in the U.S. Treasury Department's Capital Purchase Program, a program designed to invest capital in healthy banks across the nation. The U.S. Treasury has preliminarily approved an investment of up to $62 million in senior preferred stock and warrants in EFSC. At a special meeting held December 12, EFSC shareholders approved amendments to the Company's Certificate of Incorporation to authorize the senior preferred stock.

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Enterprise Financial Services Corp operates commercial banking and wealth management businesses in metropolitan St. Louis and Kansas City and a loan production office in Phoenix.

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