MB Alerts: South Financial Group Inc. Review in Progress

May 05, 2008 (M2 PRESSWIRE via COMTEX) -- TSFG | news | PowerRating | PR Charts -- MaybachFinancial.com is one of the fastest growing independent and unbiased research firms in the world. Investors wanting to know the truth about investing and how to consistently profit from whatever the markets throw our way should sign up to www.maybachfinancial.com for a free trial subscription. Through our numerous partnerships with many of the top investment minds in the world, we provide research on every company making a move in the markets. Investors seeking genuine analyst opinions on their investments for should take this opportunity to get free in-depth research on numerous publicly traded companies by becoming a member today. On Friday, May 2, 2008, we have added South Financial Group Inc. (NASDAQ: TSFG | news | PowerRating | PR Charts ) to the list of potential prospects.

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South Financial Group Inc. was up over $0.45 on over seven times its average volume early trading Friday, May 2, 2008. They recently announced the following:

Friday, May 2, 2008 The South Financial Group, Inc. announced a multi-tiered plan to strengthen its overall capital position. The plan is comprised of the issuance of approximately $250 million of mandatory convertible non-cumulative preferred stock by TSFG; the issuance of bank-level subordinated debt up to approximately $100 million following the closing of the preferred offering; and a reduction of TSFG's quarterly common stock cash dividend to $.01 per share. The additional capital will enhance TSFG's balance sheet and enable it to remain focused on executing its strategic objectives and delivering long-term shareholder value beyond this current credit environment.

"We are very pleased with the strong support we have received for our capital plan and the confidence that our investors, regulators and rating agencies have expressed in our underlying business. This was evident in the fact that our offering was over-subscribed," said Mack I. Whittle, Jr., Chairman, President and Chief Executive Officer of The South Financial Group. "Our principal objective was to fortify our balance sheet in this period of economic uncertainty. We believe that this capital raise will position us for future success under the most challenging circumstances. Given the current challenging environment for banking and residential real estate, we believe that our capital plan will enable us to continue to execute our strategic plan and position our Company for the long-term. We will continue to review our organization for further enhancements to create shareholder value. Despite the difficult market conditions, I am confident in our ability to continue serving our customers at the highest level."

The South Financial Group has accepted commitments to purchase 250,000 shares of preferred stock with a purchase price and liquidation value of $1,000 per share. The preferred securities pay dividends at an annual rate of 10%, have a conversion price of $6.50, and are expected to be convertible into approximately 38.5 million common shares of TSFG. Following shareholder approval (referenced below), the securities will be convertible at the option of the holder at any time, and will be mandatorily convertible on the earlier of three years from the date of issuance or after the two year anniversary of such shareholder approval if the closing price of TSFG's common stock equals or exceeds $21.00 per share for 20 consecutive trading days. (Approximately 23% of these preferred securities will become convertible following the initial meeting held to seek shareholder approval, without regard to whether shareholder approval is obtained at that meeting.) These preferred securities have been placed primarily with a group of institutional investors, and the Company anticipates closing the sale on May 8, 2008.

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