By Greg Edwards
The parent company of The Business Bank of St. Louis has raised $10 million in capital from a California fund that invests in community banks and that has ties to St. Louis.
The investor is Castle Creek Capital of Rancho Santa Fe, Calif. A Castle Creek partner, Mark Merlo, used to live in St. Louis and is a 1984 graduate of the University of Missouri-Columbia. “We’ve known him for 20-plus years,” Larry Kirby, president and chief executive of the bank, told the Business Journal.
The proceeds will be used to strengthen the bank’s capital, reduce debt and support growth, including possible acquisitions.
Here are the details of deal, which closed Nov. 4 and has been in the works for months: Business Bancshares Inc. receives $10 million through a private placement of 203,067 shares of common stock and 392,171 shares of non-voting common stock at a price of $16.80 a share purchased by the Castle Creek Capital Partners Fund V.