The parent of Simsbury Bank & Trust Co. says it has completed its approximately $15 million recapitalization of the community lender, with the pricing and sale of 400,000 shares of common stock.
Martin J. Geitz, president and CEO of the bank and its parent, SBT Corp., said the issuance of common shares priced at $21 apiece, raising gross proceeds of about $8.4 million, is set to close on Tuesday.
Of that sum, about $1.6 million was raised selling shares to each member of Simsbury Bank’s board of directors, its executive staff and some community investors, Geitz said. The balance was purchased by four unidentified institutional investors. Simsbury Bank has $415 million in assets.
The equity sale was the second of a two-track plan SBT announced in August, to repay by the end of this year the approximately $9 million balance borrowed from the U.S. Treasury’s Small Business Loan Fund, Geitz said.
On Oct. 15, SBT finalized funding of $7.5 million in the form of a subordinated debenture that was channeled into the bank through the purchase of stock in the lender, he said.
After underwriting expenses and other related costs, the balance of the proceeds from the $15 million recapitalization will fund Simsbury Bank’s pending West Hartford expansion, with a new branch there, more commercial loans and to finance ongoing growth, Geitz said.
Keefe, Bruyette & Woods Inc. is sole book-running manager for the offering.
