Sevier County Bancshares Inc. intends to issue 2.6 million common shares at $5.00 per share for a total capital raise of $13 million, inclusive of shares to be issued to private investor Kenneth Lehman under a securities purchase agreement.
Lehman agreed to buy from the Sevierville, Tenn.-based company 40% of the total fully diluted pro forma shares of common stock outstanding at the completion of the transactions contemplated by the agreement, subject to regulatory approval. The remaining shares will be offered for sale in a rights offering limited to current shareholders who qualify as accredited investors under federal securities law and certain other designated accredited investors.
Sevier County Bancshares had 1,468,334 shares outstanding at March 31. After the issuance of the shares in the capital raise, it will have about 4,068,334 shares outstanding, according to a news release.
The board of the company's unit, Sevier County Bank, appointed John Presley executive chairman of the bank. Pending regulatory approval, the company intends to name Presley executive chairman as well.
Presley's career in the banking industry includes serving as CFO of Memphis, Tenn.-based National Commerce Financial. He has worked closely with Lehman in other bank recapitalizations.
James Temple Jr., chairman of Sevier County Bancshares, will continue to serve on the bank's board.