Mackinac Financial (MFNC) in Manistique, Mich., will raise up to $18 million through a common stock rights offering and a securities purchase agreement with an investor.
The $498 million-asset company will use the capital to repay the $11 million it received from the Troubled Asset Relief Program in April 2009
Mackinac, the parent company of mBank, will raise up to $7 million in a common stock rights offering. After the offering is completed, Steinhardt Capital Investors has agreed to purchase between $5 million and $11 million of the bank's securities.
Steinhardt's investment will depend upon the outcome of the rights offering and whether it receives approval from the Federal Reserve Board to hold more than 9.9% of the bank's common shares, Mackinac said Wednesday.
"The ability to repay the TARP funds and the investment of the Steinhardts will position us to expand our franchise through both organic growth and accretive acquisition opportunities for continued earnings momentum that will lead to increased shareholder value," Paul Tobias, chairman and chief executive of Mackinac Financial, said in a news release.
