BELLEVUE, Wash., March 27, 2015 (GLOBE NEWSWIRE) -- Foundation Bancorp, Inc. (OTCQB:FDNB), the holding company for Foundation Bank ("Bank"), today announced that it had completed the sale of $15 million of the Company's convertible preferred stock in a private placement. The shares of preferred stock are convertible into shares of the Company's common stock at a price of $10.00 per share, subject to certain agreed upon adjustments, and, therefore, are not dilutive to existing shareholders. The Company expects to use the proceeds from the capital raise for general corporate purposes, including growth, expansion and supporting the capital needs of the Bank.
"The success of this capital raise is a reflection of the strength of our franchise, the dedication of our employees and the acumen of our business plan as a leading business bank in the greater Puget Sound Area," said Diane Dewbrey, President and CEO. "This additional capital will significantly enhance our strategic capabilities to grow our franchise and support the needs of our customers."
Castle Creek Capital was the sole investor in the offering. Keefe Bruyette & Woods served as the sole placement agent and Breyer & Associates PC served as legal counsel to the Company in connection with the transaction. Castle Creek Capital was advised by Simpson Thacher & Bartlett LLP and Klee, Tuchin, Bogdanoff & Stern LLP.
The securities issued in the private placement are not registered under the Securities Act of 1933, as amended ("1933 Act") and were offered and sold under an exemption from registration requirements provided by Regulation D promulgated under the 1933 Act.
About the Company
Foundation Bancorp (FDNB) is a bank holding company based in Bellevue, Washington, that operates Foundation Bank, a locally-owned, full service, state chartered commercial bank. Foundation Bank has been serving the greater Puget Sound region since 2000.
Safe Harbor Statement. This release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.