BNCCORP, Inc. (BNCC)

[norweger1979]

BNCCORP, INC. Announces Redemption of Series A Preferred Stock

BISMARCK, N.D., Oct. 20, 2015 /PRNewswire/ -- BNCCORP, INC. (OTCQX: BNCC) (the "Company") announced today that it is redeeming the 20,093 outstanding shares of the Company's 9% Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock"). The redemption of the Series A Preferred Stock is expected to be completed on November 19, 2015. The redemption price for the shares of Series A Preferred Stock is the stated liquidation preference amount of $1,000 per share or an aggregate $20,093,000, plus accrued and unpaid dividends aggregating approximately $15,000.

Upon completion of the redemption of the Series A Preferred Stock, the Company will have 1,005 shares outstanding of its 9% Fixed Rate Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock"). The redemption of the Series B Preferred Stock is subject to certain terms and conditions, including the prior redemption of the Series A Preferred Stock, and has not been authorized by the Company's board of directors. However, the Company has sought and received approval for the redemption of both the Series A Preferred Stock and the Series B Preferred Stock from its regulator.

The preferred stock redemption will be financed in part by proceeds from the issuance of a $10 million subordinated note that qualifies as Tier 2 capital for the Company. The subordinated debt matures on October 19, 2025, has a fixed interest rate of 6.35% per annum, pays accrued interest quarterly, and may be partially or fully prepaid beginning five years after issuance without penalty. The remainder of the redemption price is being financed from a portion of the proceeds of an $11 million dividend from BNC National Bank, the Company's wholly owned subsidiary.

The Company's current annual dividends for the Series A Preferred Stock is approximately $1,808,000 of the approximately $1,899,000 aggregate dividends on the Company's Series A and B Preferred Stock. The annual interest expense on the subordinated debt is estimated to be approximately $635,000 or $432,000 after tax.

http://www.bnccorp.com/54304/mirror/