The embattled Capitol Bancorp Ltd. has boosted its common equity by $19.2 million following a trust-preferred securities exchange that garnered little interest from its debtholders.
The $4.2 billion-asset company announced late Tuesday that 47% of the holders of its Capitol Trust I and 51% of the holders of its Capitol Trust XII agreed to exchange their holdings for common equity in an exchange that expired on Jan. 31. No holders of the company's trusts II, III, IV, VI, VII, VIII, IX or X participated in the exchange.
Full participation would have brought $170.8 million of common equity to Capitol Bancorp.
The company, which has headquarters in Lansing, Mich., and Phoenix, said the exchanged shares would eliminate $2 million of annual expenses, and said the transaction was an important first step in its overall recapitalization effort.