PLYMOUTH MEETING, Pa. -- Progress Financial Corp. said it has completed the sale of $3 million in subordinated debentures in a private placement.

Twelve units were sold, with each unit consisting of $250,000 in principal amount of 8.25% subordinated notes, due in 2004, and warrants to purchase 25,000 shares of common stock, the company said. Each warrant entitles the holder to purchase one share of the company's common stock at an exercise price of $6 at any time before June 30, 1999. Interest on the subordinated debentures is payable quarterly, commencing Oct. 1. The subordinated debentures are due June 30, 2004, and are not redeemable before July 1, 1996.

The company, which is the parent of Progress Federal Savings Bank, said it intends to use $2.4 million of the proceeds received to make a capital contribution to the bank.

W. Kirk Wycoff, president and CEO, said the private placement with warrants was considered to be the least dilutive equity structure for existing shareholders and the most effective way to meet the bank's goal of increasing capital.

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