First Mid Bancshares Inc. on Sept. 6 submitted a redemption notice to the trustee to redeem $10 million of trust preferred securities of the First Mid-Illinois Statutory Trust I, dated Feb. 27, 2004.
The redemption is expected to occur Oct. 7.
The trust preferred securities are being redeemed, along with $310,000 in common securities issued by Trust I and held by First Mid Bancshares, as a result of the concurrent redemption of 100% of the company's junior subordinated debentures due 2034 and held by Trust I, which underlie the trust preferred securities.
The junior subordinated debentures will be redeemed at a price equal to 100% of the principal amount plus accrued interest up to, but not including, the redemption date. The proceeds from the redemption will be simultaneously applied to redeem all the outstanding common securities and the outstanding trust preferred securities at a price equal to 100% of the aggregate liquidation amount of the trust preferred securities plus accumulated but unpaid distributions up to, but not including, the redemption date.
