Independent (Mich.) Raises $13M to Redeem Trups

The underwriters of Independent Bank Corp.'s (ICBP) recent offering plan to buy an additional $13.4 million worth of the company's stock.

Keefe, Bruyette & Woods, Sandler O'Neill and Boenning & Scattergood will buy more than 1.7 million shares at $7.75 each, the Ionia, Mich., bank announced Tuesday. The three companies were given the option to buy the shares as part of Independent’s recently completed offering, through which it sold $89 million worth of stock.

Independent plans to use $9.2 million of the proceeds from the underwriters' purchase to redeem trust-preferred securities, which it expects will result in cost savings of $800,000 a year. It plans to use the remainder for general corporate purposes.

The $2.1 billion-asset Independent has now sold over $102 million worth of common stock in the capital raise it began last month. It plans to use $81 million of the proceeds to retire its Troubled Asset Relief program stock from the Treasury Department. It resumed paying interest on its trust-preferred securities last month, it said.