Foundation Bancorp Announces Completion of $15 Million Private Placement of Convertible Preferred Equity
BELLEVUE, Wash.–(GLOBE NEWSWIRE)–Foundation Bancorp, Inc. (OTCQB:FDNB), the holding company for Foundation Bank (“Bank”), today announced that it had completed the sale of $15 million of the Company’s convertible preferred stock in a private placement. The shares of preferred stock are convertible into shares of the Company’s common stock at a price of $10.00 per share, subject to certain agreed upon adjustments, and, therefore, are not dilutive to existing shareholders. The Company expects to use the proceeds from the capital raise for general corporate purposes, including growth, expansion and supporting the capital needs of the Bank.
“The success of this capital raise is a reflection of the strength of our franchise, the dedication of our employees and the acumen of our business plan as a leading business bank in the greater Puget Sound Area,” said Diane Dewbrey, President and CEO. “This additional capital will significantly enhance our strategic capabilities to grow our franchise and support the needs of our customers.”
Castle Creek Capital was the sole investor in the offering. Keefe Bruyette & Woods served as the sole placement agent and Breyer & Associates PC served as legal counsel to the Company in connection with the transaction. Castle Creek Capital was advised by Simpson Thacher & Bartlett LLP and Klee, Tuchin, Bogdanoff & Stern LLP.