Fort Lauderdale, Fla.-based OptimumBank Holdings Inc. has completed the private offer to exchange a portion of its outstanding trust preferred securities.
The company issued 924,395 common shares for 1,881 trust preferred securities, which had an outstanding balance of about $2.6 million as of Dec. 26, 2019, the expiration date of the offer. The shares were issued to 13 accredited investors who held trust preferred securities.
The number of common shares exchanged for each trust preferred security was determined by dividing the outstanding balance of each trust preferred security as of the expiration date by the applicable price of the common stock as of the expiration date. The exchange offer price was equal to $2.86 per share, representing the closing price of the common stock on the expiration date.
The company intends to cancel the trust preferred securities acquired in the exchange offer. Following the offer, there were 2,425 outstanding trust preferred securities that had not been acquired by the company. These had an outstanding balance of about $3.4 million on Dec. 31, 2019.
OptimumBank Holdings is the parent company of OptimumBank.