CVB Financial launches stock offering
CVB Financial launches offering of $115 million in common stock
On Monday July 20, 2009, 6:35 pm EDT
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Companies:Cvb financial corp.
ONTARIO, Calif. (AP) -- CVB Financial Corp. said Monday it launched an offering for about $115 million in common stock to buy back preferred stock and warrants sold to the federal government as part of the economic-stimulus package.
At CVB's closing price Monday, the offering would represent about 22.5 percent of all outstanding shares, according to figures from a recent regulatory filing.
CVB, the parent of Citizens Business Bank, said it would grant underwriters a 30-day option to buy up to an additional 15 percent of the shares sold in the offering to cover over-allotments, if any.
The company said that if regulators approve, it would use the proceeds to redeem preferred stock and warrants sold to the U.S. Treasury, which bought $130 million of preferred stock from CVB in December.
Citizens Business Bank serves 39 cities in Southern California and the Central Valley.
CVB shares fell 6 cents to $6.14 in regular trading, then after the announcement of the stock offering, they dropped another 34 cents, or 5.5 percent, to $5.80.
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