First Carolina Corporate CU Plans $75 Million Recap
GREENSBORO, N.C. – First Carolina Corporate CU on Thursday announced a recapitalization campaign under which the $2 billion corporate will seek to raise as much as $75 million in perpetual contributed capital.
First Carolina’s plan calls for participating credit unions to convert existing membership capital share deposit balances and invest additional money in First Carolina to help it meet NCUA’s new capital ratio requirements.
The offering, combined with the corporate’s $35 million in capital, would give First Carolina about $100 million in capital, a 5% ratio, under NCUA’s new corporate regulations.
First Carolina, which submitted its offering to members Feb. 4, is requesting that members submit subscription agreements by April 29.
“With members’ support, we expect to complete the offering this spring and be fully compliant with the capital standards outlined in the new regulation by the October 2011 deadline,” said David Brehmer, president of the corporate.