VantageSouth in N.C. to Raise $50M, Exit Tarp

By Chris Cumming August 21, 2013, 9:20 a.m. EDT 1 Min Read

Community banking

VantageSouth in N.C. Raises $38 Million

VantageSouth Bancshares (VSB) in Raleigh, N.C., has sold $38.1 million in subordinated debt.

By Chris Cumming

August 14
Community banking

VantageSouth, Crescent State Bank to Merge

Two banks that are majority-owned by Piedmont Community Bank Holdings in Raleigh, N.C., have agreed to merge.

By Jackie Stewart

August 13
Community banking

Cost of Tarp Membership to Spike as 5-Year Mark Nears

Banks that still hold Tarp funds face the prospect of dividend rates rising to 9% from 5% at a time when many of those institutions are still struggling.

By Andy Peters

June 11

VantageSouth Bancshares (VSB) in Raleigh, N.C., plans to sell up to $50 million of preferred stock to leave the Troubled Asset Relief Program.

The $1.7 billion-asset company plans to sell the shares through a public offering, it disclosed in a prospectus filed with regulators Tuesday. VantageSouth did not announce the pricing of the offering, which will be underwritten by Keefe, Bruyette & Woods and Sandler O'Neill.

VantageSouth plans to use most of the proceeds to repay the Treasury Department $42.8 million for the outstanding preferred stock it issued through Tarp and $1.5 million for a warrant to buy about 1.3 million shares of the company's common stock, the filing said.

Earlier this month, VantageSouth raised $38 million by taking on subordinated debt. Crescent Financial Bancshares bought VantageSouth last year. The combined company converted to the VantageSouth name in July.

Banks have been racing to exit Tarp before the interest rate on Tarp debt jumps to 9% from 5% at the five-year anniversary of the issuance of the debt.

Chris Cumming