A private-equity firm's deal to buy the struggling Greater Atlantic Financial Corp. in Reston, Va., is getting more time to close.
The $219 million-asset Greater Atlantic said in a Securities and Exchange Commission filing this week that the deal to sell itself to MidAtlantic Bancorp Inc. and GAF Merger Corp. — two companies formed by the private-equity firm Comstock Partners LC to facilitate the transaction — is now set to close by Nov. 30.
The deal, which was announced in June, originally was expected to close by Sept. 30. But the deadline was extended, first to Oct. 30 and then to Nov. 15.
MidAtlantic has agreed to pay $300,000 for the company and up to $15 million to recapitalize it, but the deal is contingent on Greater Atlantic’s completing a debt exchange.
Greater Atlantic said in a press release Monday that the exchange is going well. It has extended until Nov. 30 the deadline for its trust-preferred shareholders to tender their securities for cash. As of Monday 643,580 shares of the securities had been tendered, far in excess of the 505,040 that MidAtlantic required under the deal.