No. of Recommendations: 2
If the new capitalization rules stress them too much, they may do what Capitol Bancorp is doing. (CBC suspend the distribution a year ago, but now they're offering a tender for conversion to common.)

Or they could do what BankAtlantic (BBX) is trying to do, apparently somewhat unsuccessfully....

BankAtlantic suspended the dividends on their publicly traded Trust Preferred, BBXT, and presumably, their non-publicly traded Trust Preferreds, on Feb 9, 2009.

On Jan 21, 2010, BankAtlantic issued a tender offer for 13 series of Trust Preferreds, BBXT and 12 non-publicly traded, at 20¢ on the dollar. Here's the 8-K announcing the offer, which was to expire on Feb 22, 2010: http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F... The effect for the publicly traded series was that the shares could be redeemed for $5 based on their par value of $25.

On Feb 23, they announced that they were extending the time period of the offer for the 12 non-publicly traded series until Mar 22, still at 20¢ on the dollar: http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F... The publicly traded shares were not included in the extension. I wasn't able to find any announcement of how many of the publicly traded shares were tendered, but I doubt it was a lot of them, since the minimum that the shares sold at between 1/22 and 2/22 was $6.18, so anyone wanting to get rid of their shares would have been better off selling them directly.

On Mar 23, another extension announcement until Apr 22, still at 20¢ on the dollar: http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F...

On Apr 22, another extension announcement (until May 22): http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F... This extension announcement included information that more than 66 2/3% of the holders of $25.2 million principal balance of senior notes issued for one of the TrUPs series (principal amount of $50 million) had directed that the tender offer be accepted, but that the Trustee (BoNY-Mellon) said that it required a higher concurrence.

On Apr 28, there's an 8-K about BankAtlantic suing BoNY-Mellon http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F...

On May 21 - you guessed it - another extension until June 22, but this time with a sweetener - the offer has been increased to 60¢ on the dollar: http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F... The publicly traded shares were not added back into the sweetened deal. At $15 a share for the publicly traded shares (60¢ on the dollar for a $25 par value), they probably would have gotten a decent amount of takers, since max that the shares have traded at since Jan 22 is $12.23, and there have been nearly 1.02 million shares (out of a base of 2.2 million shares) that have traded since then.

AJ
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