Southside Bancshares Announces Public Offering of 2 Million Trust Preferred Securities

Strategic Insights -

Southside Bancshares, a bank holding company based in Tyler, Texas, has announced an underwritten public offering of 2 million trust preferred securities, with an option to purchase up to 300,000 additional shares to cover over-allotments. The proceeds from the offering will be used to purchase junior subordinated debentures issued by Southside Bancshares, which will mature on June 30, 2028. The debentures can be redeemed at par in whole or in part from time to time on or after June 30, 2003. The company plans to use the proceeds from the sale of the debentures for general corporate purposes, including capital contributions to its bank subsidiary, working capital, and potential acquisitions.

Key Takeaways:

  • Southside Bancshares has announced a public offering of 2 million trust preferred securities, with an option to purchase up to 300,000 additional shares.
  • The proceeds from the offering will be used to purchase junior subordinated debentures issued by Southside Bancshares, which will mature on June 30, 2028.
  • The debentures can be redeemed at par in whole or in part from time to time on or after June 30, 2003.
  • Southside Bancshares plans to use the proceeds from the sale of the debentures for general corporate purposes, including capital contributions to its bank subsidiary.
  • The company has a total of 8 locations in the Tyler Metropolitan Area, with deposits insured by the Federal Deposit Insurance Corporation up to applicable limits.
  • As of March 31, 1998, the company had total assets of $571 million and shareholders' equity of $40 million.

Statistics:

  • 2 million: number of trust preferred securities to be issued.
  • 300,000: additional shares that can be purchased up to cover over-allotments.
  • $10: liquidation amount per share of trust preferred securities.
  • 8.50%: annual interest rate on the trust preferred securities.
  • June 30, 2028: maturity date of the junior subordinated debentures.
  • June 30, 2003: earliest date for redemption of the debentures at par.
  • 180 days: time period within which the company can redeem all debentures at par in certain events.
  • 100%: ownership of Southside Bank, which has 8 locations in the Tyler Metropolitan Area.
  • $571 million: total assets of Southside Bancshares as of March 31, 1998.
  • $40 million: shareholders' equity of Southside Bancshares as of March 31, 1998.

Sources:

  • PRNewswire, May 13, 1998
  • Ryan, Beck & Co.
  • Southside Bancshares, Inc.