EverBank Converts Tygris Cash Escrow to Stock Escrow
EverBank Financial announced that the company had converted $48.7 million of cash, which was held in escrow related to EverBank’s acquisition of Tygris Commercial Finance, into 4,032,662 shares of its common stock at a price per share of $12.07. The conversion price was based on the trailing ten-day volume weighted average price per share of EverBank’s common stock through August 27, 2012, as quoted on the New York Stock Exchange.
The private placement involved certain of EverBank’s shareholders, all of whom are accredited investors and former shareholders of Tygris. The newly issued shares in this transaction will remain in escrow per the terms of the original escrow agreement.
The escrow account was established in connection with the Tygris acquisition to offset potential losses realized in connection with the acquired lease and loan portfolio over a five-year period following the closing of the transaction.
Based on the performance of the acquired Tygris portfolio to date, the company anticipates the shares will be fully released in 2015.
The additional capital from the private placement will be used to support future growth in EverBank’s business and for general corporate purposes. The shares of common stock issued to the purchasers have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold following the release of such shares from the escrow, absent registration or an applicable exemption from registration.
To read the EverBank Financial news release, click here.
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