Fort Walton Beach, Fla.-based Beach Community Bank issued a total of 14,702,382 common shares and 5,405,604 of nonvoting preferred shares at $5.00 per share for aggregate gross proceeds of about $100 million.
Shares of Beach Community Bank were sold in a private placement by Beach Community Bancshares Inc., the former holding company of Beach Community Bank, pursuant to a bankruptcy proceeding.
Beach Community Bank will use substantially all of the proceeds for its recapitalization, to support its operations, raise its capital ratios, grow market share and for general corporate purposes.
In addition, Carl Chaney, former CEO of Hancock Whitney Bank, will serve as executive chairman of Beach Community Bank. Charles Reeves will serve as president, director and CEO of the bank.
Citing outstanding obligations of nearly $14.7 million related to subsidiary trust preferred securities, Beach Community Bancshares had filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Northern District of Florida.
Hovde Group LLC served as the exclusive sales agent for the private placement and as financial adviser to Beach Community Bank. Nelson Mullins Riley & Scarborough LLP and Smith Mackinnon PA were the bank's legal counsel.