FBR Capital Maintains a 'Market Perform' on United Community Banks (UCBIAnnounces $380M Private Placement and $435 Million Sale of Classified Assets
Tweet
Share
E-mailGet Alerts UCBI Hot Sheet
Price: $27.83 --0%
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
FBR Capital maintains a 'Market Perform' on United Community Banks (NASDAQ: UCBI).
FBR analyst says, "After the close UCBI announced a private placement of $380 million in additional capital and the sale of $435 million in classified assets. Under the terms of the private placement agreement, shares of common stock and convertible preferred will be issued to an affiliate of Corsair Capital and a group of investors, the common will be issued at $1.90 per share (and the convertible preferred will convert at the same price). Post conversion, Corsair and its partners will own 22.5% of the pro forma common shares of UCBI and will be allowed to appoint one person to the company’s board of directors."
"As a result of both transactions, pro forma TBV as of the end of 2010 would be equal to $2.27. We view this as a positive for the company as it will bolster the company’s depleted capital base (pro forma TCE/TA of 8.5%) and greatly reduce the level of problem assets on balance sheet, providing an opportunity to move toward profitability and potential loan originations quicker than previously anticipated."
For more ratings news on United Community Banks click here and for the rating history of United Community Banks click here.
Shares of United Community Banks closed at $1.53 yesterday.
FBR analyst says, "After the close UCBI announced a private placement of $380 million in additional capital and the sale of $435 million in classified assets. Under the terms of the private placement agreement, shares of common stock and convertible preferred will be issued to an affiliate of Corsair Capital and a group of investors, the common will be issued at $1.90 per share (and the convertible preferred will convert at the same price). Post conversion, Corsair and its partners will own 22.5% of the pro forma common shares of UCBI and will be allowed to appoint one person to the company’s board of directors."
"As a result of both transactions, pro forma TBV as of the end of 2010 would be equal to $2.27. We view this as a positive for the company as it will bolster the company’s depleted capital base (pro forma TCE/TA of 8.5%) and greatly reduce the level of problem assets on balance sheet, providing an opportunity to move toward profitability and potential loan originations quicker than previously anticipated."
For more ratings news on United Community Banks click here and for the rating history of United Community Banks click here.
Shares of United Community Banks closed at $1.53 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Keefe, Bruyette & Woods Downgrades Bain Capital Specialty Finance (BCSF) to Market Perform
- Investec Double Upgrades Alkem Laboratories Ltd (ALKEM:IN) to Buy
- Goldman Sachs Reinstates Etsy (ETSY) at Neutral
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Corsair CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
