NCAL Bancorp (fka NCAL)

[Enterprising Investor]

NCAL Bancorp Completes Initial Recapitalization (12/10/14)

LOS ANGELES--(BUSINESS WIRE)--NCAL Bancorp (OTCBB:NCAL), the parent company of National Bank of California, announced today the sale of 19,890,322 shares of its common stock for $10,881,000, or $0.54705 per share, to Alex Meruelo and the current directors and an officer of the company. Mr. Meruelo is the founder of the Meruelo Group, located in Downey, California. He will now own approximately 89% of the total outstanding shares of common stock of NCAL Bancorp.

Concurrent with their common stock investment, Mr. Meruelo and the current directors and officers of NCAL Bancorp purchased all outstanding shares of the fixed rate cumulative perpetual preferred stock, series A and series B, of NCAL Bancorp from the U.S. Department of the Treasury for $3,900,000, including $1,800,000 of funds from the current directors and officers. Upon approval of the Federal Reserve Bank of San Francisco, the preferred shares will be converted at the $0.54705 price at which common shares were issued in the recapitalization into NCAL Bancorp common stock based on a total value of $3,900,000. When the preferred stock is converted Mr. Meruelo’s ownership will be reduced to approximately 80% of the outstanding common shares. Mr. Meruelo may also purchase an additional $10,219,000 in common shares at the same per share price during the next 12 months in the second stage of the recapitalization of the company, subject to certain conditions.

For more information, contact [e-mail], Phone [phone]

http://www.businesswire.com/news/home/20141210006513/en/NCAL-Bancorp-Completes-Initial-Recapitalization#.VIkNmIluiUk