Hovde Securities to Raise $60 Million to Recapitalize First PacTrust Bancorp
Posted July 27, 2010 4:13PM PST

Hovde Securities is arranging a $60 million private placement of common stock, non-voting stock and warrants for First PacTrust Bancorp, the holding company for Pacific Trust Bank of Chula Vista, Calif.

First PacTrust said it's issuing 4.5 million shares of common stock and 920,000 shares of non-voting stock, both priced at $11 each. The price reflects a 37.5% premium compared with the price where the stock closed on Monday.

Investors in the placement include TCW Shared Opportunity Fund V LP, COR Capital LLC, St. Cloud Capital LLC, America Start-Up Financial Institutions Investments I LP, and additional institutional and accredited investors.

TCW will also receive immediately exercisable warrants to purchase 240,000 shares of non-voting stock at an exercise price of $11 each. COR Capital will get similar warrants to purchase 1.5 million shares at the $11 exercise price.

First PacTrust said it plans to use the proceeds to repay the Troubled Asset Relief Program and hire a new chief executive.

Once the private placement is completed, the bank said it plans to hire Gregory Mitchell as its CEO. Mitchell, who currently is a consultant for the bank, is replacing Hans Gaz, who will remain the CEO of Pacific Trust Bank.

The bank also plans to name Steven Sugarman to its board of directors. Sugarman is a managing member of COR Capital.

Source: Press Release


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