LANSING, Mich., and
PHOENIX, Oct. 19 /PRNewswire-FirstCall/ -- Capitol Bancorp
Limited (NYSE: CBC) ("Capitol") announced today that it has
terminated its 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
without accepting for exchange or exchanging any shares of the
Trust Preferred Securities. As of the close of business on
October 18, 2010, of the 1,454,100
outstanding trust preferred securities of Capitol Trust XII,
432,348 (approximately 30 percent) had been tendered.
The Exchange Offer was subject to the receipt of a majority of
the Consent Solicitations 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. Because the required Consents
have not been received, Capitol has elected to terminate the
Exchange Offer pursuant to the terms and conditions of the Exchange
Offer. As a result of the termination of the Exchange Offer,
no shares of Capitol's common stock will be issued for the
Trust-Preferred Securities issued by Capitol Trust XII, a
Delaware statutory trust to
holders that have validly tendered their Trust Preferred Securities
in connection with the Exchange Offer.
Capitol also announced that it has terminated the Consent
Solicitation for Capitol Trust I. As of the close of business
on October 18, 2010, of the 2,530,000
outstanding trust preferred securities of Capitol Trust I, 567,374
had consented for the proposed amendment to the Indenture and
567,308 had consented for the proposed amendment to the Guarantee
Agreement.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy securities, nor shall there be any
offer, solicitation or sale of any securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
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.
SOURCE Capitol Bancorp Limited
Copyright . 19 PR Newswire
