BankAtlantic Bancorp Inc. of Fort Lauderdale, Fla., said it hopes to raise up to $25 million of fresh capital through a rights offering to existing shareholders.
Alan B. Levan, the chairman of the $4.7 billion-asset company, said Wednesday that the proceeds from the offering will help bolster capital at its bank unit.
The unit has struggled with loan losses as a result of deteriorating real estate values in Florida. On March 31 the bank had a total risk-based capital ratio of 12.86%.
Under the offering, set for June 14, BankAtlantic will distribute nontransferrable subscription rights to each shareholder to purchase shares of its class A common stock.
The amount of subscription rights will be based on the number of shares outstanding on June 14. The price will be set closer to the offering, the company said.
BankAtlantic filed a shelf registration statement that would allow it to raise up to $75 million, either through a rights offering or a common stock offering.
