United Community Banks (UCBI) in Blairsville, Ga., has registered $35 million in senior notes on behalf of several outside investors.
The $6.7 billion-asset company had issued the notes to three institutional investors in October. The company filed a shelf registration on Friday to allow those investors to periodically resell the notes, which are due in 2017.
United Community, which will not collect any proceeds from such sales, cautioned in its filing that its ability to generate enough cash flow to pay interest on the notes will depend on its future performance, including economic factors like the "fiscal cliff" that "we cannot control."
In March 2011, a number of private equity groups recapitalized United Community, which has since returned to profitability. United Community earned $10.6 million in the third quarter, compared to an $11 million loss a year earlier.
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