EVB closes $45 million private placement

Published June 14, 2013 by Robert Powell, III

Tappahannock-based Eastern Virginia Bankshares Inc. has closed a $45 million private placement of common and preferred stock.

The company plans to use gross proceeds for general corporate purposes, including strengthening its balance and disposing of problem assets.

The bank’s goals include repurchasing preferred stock and warrants issued to the U.S. Treasury through the Troubled Asset Relief Program (TARP) and exiting from its written agreement with the Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions.

The company issued 4.6 million of newly issued common stock and 5.2 million shares of preferred stock at $4.55 each to affiliates of Castle Creek Capital Partners, GCP Capital Partners and other institutional investors.

Keefe, Bruyette & Woods, Inc. acted as the exclusive placement agent for the company and Troutman Sanders LLP acted as legal advisor.