Key Developments For First Regional Bancorp
First Regional Bancorp (FRGB.O) (Nasdaq)
First Regional Bancorp Appoints Gary M. Horgan as New Chairman
First Regional Bancorp announced that Jack A. Sweeney, Chairman and Director of the Company has announced that, effective January 2, 2009, he will retire from his dual roles as Chairman and Director. In connection with Mr. Sweeney's retirement, the Company also announced that, effective January 2, 2009, Gary M. Horgan will assume the post of Chairman of the Board.
First Regional Bancorp Announces Share Repurchase Program
First Regional Bancorp announced that its Board of Directors has approved and adopted a share repurchase program authorizing First Regional to repurchase up to 1,000,000 shares, or approximately 8%, of its outstanding common stock over the next twelve months. Under the repurchase program, which is effective immediately, the Company will purchase shares from time to time in the open market, depending on market price and other considerations. The timing of purchases and the prices to be paid will be at the discretion of management. Any such repurchased shares are expected to be retired.
First Regional Bancorp Announces Issuance of $30,000,000 in Trust Preferred Securities
First Regional Bancorp announced that it has raised $30 million of new capital pursuant to trust-preferred transactions involving a newly formed, wholly owned, statutory business trust. The securities were issued in private placement transactions as part of a pooled securitization transaction involving several other financial institutions. Holders of the trust securities will be entitled to receive cumulative cash distributions at a floating interest rate equal to three-month LIBOR plus 1.50%. First Regional intends to invest the majority of the net proceeds from these transactions in First Regional's subsidiary, First Regional Bank, to support its continued growth. The remaining proceeds will be used for general corporate purposes in the effort to continue to promote the future growth of First Regional.
First Regional Bancorp Announces Issuance Of $20,000,000 In Trust Preferred Securities
First Regional Bancorp announced that it has raised $20 million of new capital pursuant to trust preferred transactions involving a newly formed, wholly owned, statutory business trust. The securities were issued in private placement transactions as part of a pooled securitization transaction involving several other financial institutions. Holders of the trust securities will be entitled to receive cumulative cash distributions at a floating interest rate equal to three-month LIBOR plus 1.48%. The transactions are substantially similar to the four previous trust preferred transactions the Company has effected. First Regional has raised a total of $60 million pursuant to these trust preferred transactions, which figure includes today's $20 million issuance. The Company intends to invest the majority of the net proceeds from these transactions in its subsidiary, First Regional Bank.
First Regional Bancorp Announces Issuance Of $15 Million Of Convertible Subordinated Debentures
First Regional Bancorp announced the issuance of $15 million aggregate principal amount of convertible subordinated debentures due 2023. The debentures will bear interest at a rate of 6% per annum and are convertible into First Regional's common stock at a conversion price of $27.50 per share. The debentures are senior to the Company's trust securities but are subordinate to First Regional's other existing and future senior indebtedness. The conversion price is subject to adjustment upon the occurrence of specified events. At the initial conversion price, each $1,000 principal amount of debentures will be convertible into approximately 36.36 shares of First Regional's common stock. The initial conversion price represents a premium of approximately 8% over the last reported sale price of First Regional's common stock on October 29, 2003, which was $25.48 per share. The debentures are callable at par on or after October 30, 2007.
