The holding company for Tennessee's FirstBank plans to hold an initial public offering, in order to make more than $65 million in distributions and debt repayments to its chairman.
The $2.9 billion-asset FB Financial in Nashville proposed raising up to $115 million in its IPO. FB Financial filed its latest plans for an IPO on Friday and it first disclosed its IPO plans in September, when it was called First South Bancorp.
FB Financial will use some proceeds to make a $55 million cash distribution to James Ayers, the company's chairman and sole owner. FB Financial will also repay $10.1 million in subordinated debt held by Ayers. FB Financial plans to use the remaining proceeds for organic growth and potential acquisitions.
In conjunction with the IPO, FB Financial plans to convert from an S corporation to a C corporation. S corporation shareholders are responsible for paying their share of the company's profits on their personal tax returns. In a C corporation, the company is taxed for its profit.
JPMorgan Chase, UBS and Keefe, Bruyette & Woods are financial advisers to FB Financial. Alston & Bird is legal counsel.
FirstBank was founded in Lexington, Tenn., in 1906 and operates 45 branches in Tennessee, Georgia and Alabama.