A team of executives, led by former Citizens Financial Group president James G. Connolly, has raised $1.15 billion in an equity offering for the recently formed NBH Holdings Corp., which was created to build a new community bank franchise.
NBH, which intends to apply to become a bank holding company, expects to use the proceeds of the offering to build a community banking franchise focused on serving the needs of retail and business customers. NBH will seek to achieve this goal through a combination of disciplined acquisitions and organic growth, according to a statement.
Connolly is NBH’s President and Chief Executive Officer. Joining him as company executives are: James B. Fitzgerald, chief financial officer; Thomas M. Metzger, chief risk officer; and Donald Gaiter, chief of acquisitions and strategy. NBH will be overseen by a board of directors chaired by Frank V. Cahouet, former chairman, president, and CEO of Mellon Financial Corp.
The $1.15 billion in shares were purchased by more than 70 non-control institutional investors, none of whom will have a board seat, an economic interest in excess of 9.9 percent, or a voting interest in excess of 4.9 percent (other than mutual funds that may own a voting interest of up to 9.9%), the company said.
"We are pleased to have completed this equity offering," Connolly said in a statement. "We are eager to begin the process of creating a high-performing, community-focused banking enterprise that delivers a superior level of service and is recognized for its commitment to its customers, employees and investors. The current recapitalization of the U.S. banking industry provides a unique opportunity for NBH, and we appreciate the confidence that our investors have placed in us."
The private placement transaction was executed pursuant to Rule 144A of the Securities Act of 1933 and other exemptions. The company will seek to make control investments in one or more U.S. banking institutions over time.
FBR Capital Markets Corporation (Nasdaq: FBCM) served as financial advisor and placement agent for the offering. Wachtell, Lipton, Rosen & Katz served as NBH’s legal advisor.
