Bancroft Capital and Orient Property Group to invest $210 million in Temecula Valley Bancorp

Fri. June 05, 2009; Posted: 02:28 PM

Jun 05, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- TMCV | Quote | Chart | News | PowerRating -- Temecula Valley Bancorp, Inc. along with its wholly-owned subsidiary Temecula Valley Bank, a provider of banking and financial services, has entered into a non-binding letter of intent (LOI) with Bancroft Capital and certain institutional investors including Orient Property Group, LLC to receive a total cash investment of $210 million. All the parties are based in the US.

Bancroft Capital and Orient Property Group are real estate investment firms.

Under the terms of the LOI, Bancroft and/or Orient would make a $105 million equity investment in equity securities and an additional $105 million investment in a pool of targeted loans. The investors will purchase Temecula Valley Bancorp shares of voting securities that would receive Tier 1 capital treatment. The preferred stock issued would be convertible at a conversion price of $0.50 per share, equating to a premium of approximately 25% over the closing price of $0.40 of the common stock of Temecula Valley Bancorp on May 29, 2009.

Additionally, the structure of the transaction contemplates that certain of the investors would contribute $105 million to a separate entity that will be jointly owned by Temecula Valley Bank and such investors. Upon completion of the transaction, the investors would own approximately 95% of Temecula Valley's fully diluted outstanding equity.

Stifel, Nicolaus & Company Incorporated is acting as financial advisor to Temecula Valley Bancorp on the transaction.

Deal Value (US$ Million) 210
Deal Type                Private Equity
Sub-Category             None
Deal Status              Announced: 2009-06-01

Deal Participants

Target (Company) Temecula Valley Bancorp, Inc.

Bid Premium ($ per share) 25

For full details for TMCV click here.

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