TALLAHASSEE, Fla. – Southeast Corporate FCU on Monday said it is still short of its planned capital raising for its merger into Corporate One FCU and has extended the deadline for subscriptions another month, until June 29.
The board of the $1.6-billion corporate had planned to bring $75 million of perpetual contributed capital to the merger – but it had only raised $66.4 million from its members by May 31, leaving a shortfall of about $8.6 million at the previous deadline for subscription, according to Brad Miller, president of Southeast Corporate.
Most of the new PCC consists of the conversion of $43.7 million of Southeast’s $62.4 million of membership capital shares. Miller said he is hoping to convince more of the MCS holders to convert so the corporate can reach its goal of $75 million. “I’m pretty confident we’re going to get the capital,” he told Credit Union Journal yesterday.
Even if Southeast falls short of the $75-million goal, the Corporate One board, which has approved the merger, could choose to proceed with the combination at a lower capitalized ratio for the merged corporate.
The merger will create one of the four biggest corporates, with the surviving Corporate One having between $4.5 billion and $5 billion in assets and serving almost 1,200 credit unions.
