Citizens South Banking (CSBC) to Sell up to $30M in Common Stock Offering

October 16, 2009 8:23 AM EDT

Citizens South Banking Corporation (Nasdaq: CSBC) announced that it has filed a registration statement with the Securities and Exchange Commission with respect to a proposed public offering of common stock.

Citizens South expects to sell approximately $30 million of common stock in an underwritten public offering through Keefe, Bruyette & Woods. Keefe, Bruyette & Woods will serve as lead manager and sole book runner. Citizens South intends to grant the underwriter an option to purchase up to an additional 15% of the shares sold to cover over-allotments, if any.

Citizens South intends to use the net proceeds for general corporate purposes and may contribute some portion of the net proceeds in the form of capital to Citizens South Bank, which will use any such amount for its general corporate purposes and for anticipated balance sheet growth, both organically (including by establishing new branches) or by acquiring branches or other financial institutions, including failed institutions placed into receivership by the FDIC. Citizens South also intends to use a portion of the net proceeds of the stock offering to redeem the Series A Preferred Stock and related warrant Citizens South issued to the U.S. Department of the Treasury under the TARP Capital Purchase Program.

Related Categories

Equity Offerings

Stocks Mentioned

Related Entities

• Keefe, Bruyette & Woods
• Treasury Capital Purchase Program
• FDIC

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