Bay National Corporation Announces Trust Preferred Securities Issue
15 Décembre 2005 - 8:02PM
PR Newswire (US)
BALTIMORE, Dec. 15 /PRNewswire-FirstCall/ -- Bay National
Corporation (OTC:BANI) (BULLETIN BOARD: BANI) today announced that
its wholly owned subsidiary, Bay National Capital Trust I, issued
$8.0 million of 30-year fixed rate (7.20 percent) trust preferred
securities. The trust preferred securities require quarterly
payments of interest, mature on February 23, 2036 and are
redeemable at Bay National Corporation's option, in whole or in
part, beginning February 23, 2007 at 104%, which premium decreases
to par after February 23, 2007. The trust preferred securities were
sold in a private placement pursuant to an applicable exemption
from registration under the Securities Act of 1933, as amended, and
may not be reoffered or resold in the United States absent
registration or an exemption from the registration requirements.
The proceeds from the sale of the trust preferred securities were
used to acquire debt securities of Bay National Corporation which,
in turn, used $2.2 million of the proceeds to repay in full the
amount outstanding under its credit facility with Drovers Bank of
York, Pennsylvania, a division of Fulton Bank, and intends to use
the remainder for general corporate purposes, including but not
limited to supporting continued asset growth. Bay National Bank, a
wholly owned subsidiary of Bay National Corporation, was founded in
2000 to fill the void created by the unprecedented bank merger and
acquisition activity. The bank's niche is small to middle-market
businesses, professional service firms, non-profit entities and
successful individuals. It offers a complete range of commercial,
private, cash management, retail and mortgage banking services
delivered with a high degree of respect and integrity. Bay National
Corporation, with assets at September 30, 2005 of $202.4 million,
has two full-service banking offices - Baltimore and Salisbury,
Maryland. The statements in this press release that are not
historical facts constitute "forward-looking statements" as defined
by Federal Securities laws. Such statements, regarding Bay National
Corporation's anticipated future results of operations, are subject
to risks and uncertainties that could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Potential risks and uncertainties
include, but are not limited to, statements regarding the
anticipated use of the proceeds from the trust preferred
securities, changes in interest rates, deposit flows, loan demand
and real estate values; as well as changes in economic,
competitive, governmental, regulatory, technological and other
factors which may affect Bay National Corporation specifically or
the banking industry generally. Forward-looking statements speak
only as of the date they are made. Bay National Corporation will
not update forward-looking statements to reflect factual
assumptions, circumstances or events that have changed after a
forward-looking statement was made. For further information, please
refer to the Bay National Corporation reports filed with the U.S.
Securities and Exchange Commission. DATASOURCE: Bay National
Corporation CONTACT: Hugh W. Mohler, Chairman & CEO,
+1-410-427-3707 or Mark A. Semanie, Executive Vice President &
CFO, +1-410-427-3715, both of Bay National Web site:
http://www.baynational.com/
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