LANSING, Mich., and
PHOENIX, Sept. 23 /PRNewswire-FirstCall/ -- Capitol
Bancorp Limited (NYSE: CBC) (the "Corporation") today announced
that it has extended its pending offer to exchange up to 2,908,200
shares of its common stock, no par value per share, for any and all
of its outstanding 10.50% trust preferred securities (the "Trust
Preferred Securities") of Capitol Trust XII, a statutory trust
formed under the laws of the State of Delaware. The offer
commenced on May 28,
2010.
The exchange offer was previously scheduled to expire at
11:59 p.m., Michigan time, on September 22, 2010, and has been extended until
11:59 p.m., Michigan time, on October 18, 2010, in order to give holders of the
Trust Preferred Securities adequate time and opportunity to assess
the proposed transaction and if necessary, to complete the
appropriate documentation associated with the exchange. As of
the close of business on September 22,
2010, of the 1,454,100 outstanding trust preferred
securities of Capitol Trust XII, 400,714 (approximately 28 percent)
had been tendered. Due to current market conditions, the
exchange offer has been amended so that for each $10.00 liquidation amount of Trust Preferred
Securities accepted in the exchange offer, Capitol will issue 3
shares of its common stock, rather than 2 shares as stated in the
initial offering.
Capitol also announced that it has extended the Consent
Solicitation relating to amendments to certain provisions
of the Indenture, dated as of December 18,
1997, as supplemented by the First Supplemental Indenture,
dated as of July 31, 2009, by and
between Capitol and The Bank of New York Mellon Trust Company,
N.A., as trustee, and to the Guarantee Agreement dated as of
December 17, 1997 by and between
Capitol and the Trustee, as amended on July
31, 2009 pursuant to which the 8.50% Cumulative Trust
Preferred Securities due 2027 of Capitol Trust I, a Delaware statutory trust, were issued, upon
the terms and subject to the conditions set out in the Consent
Solicitation Statement. The Consent Solicitation was
previously scheduled to expire at 5:00
p.m., Michigan time on
September 22, 2010, and has been
extended until 5:00 p.m.,
Michigan time on October 18, 2010. As of the close of
business on September 22, 2010, of
the 2,530,000 outstanding trust preferred securities of Capitol
Trust I, 502,456 had consented for the proposed amendment to the
Indenture and 502,390 had consented for the proposed amendment to
the Guarantee Agreement.
This press release is for informational purposes only and is not
an offer to buy or the solicitation of an offer to sell any
securities. Solicitation of offers to exchange shares of the
Trust Preferred Securities will only be made pursuant to the
Offering Memorandum distributed by the Corporation.
About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $4.7 billion national community banking company,
with a network of bank operations in 14 states. Founded in
1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan and Phoenix, Arizona.
Forward Looking Statement
Certain statements in this announcement contain forward-looking
statements that are based on management's expectations, estimates,
projections and assumptions. Words such as "expects,"
"anticipates," "plans," "believes," "scheduled," "estimates" and
variations of these words and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These
statements are not guarantees of future performance and involve
certain risks and uncertainties which are difficult to predict.
Therefore, actual future results and trends may differ materially
from what is forecast in forward-looking statements due to a
variety of factors.
All forward-looking statements speak only as of the date of this
press release. All subsequent written and oral forward-looking
statements attributable to the company or any person acting on the
Corporation's behalf are qualified by the cautionary statements in
this press release. The Corporation does not undertake any
obligation to update or publicly release any revisions to
forward-looking statements to reflect events, circumstances or
changes in expectations after the date of this press release.
SOURCE Capitol Bancorp Limited
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