VALDOSTA, Ga., March 10, 2009 (GLOBE NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the parent company for The Park Avenue Bank, announced today that it has entered into investment agreements with certain investors for the purchase of approximately $10.3 million of a newly-created class of preferred stock. Subject to receipt of shareholder approval, the preferred stock will be convertible into shares of the Company's common stock, and upon conversion, the investors will receive warrants to purchase additional shares of common stock equal to 30% of the aggregate value of the preferred stock. The common stock conversion price is $3.00 per share. The issuance of the preferred stock is conditional upon the Bank achieving a total risk-based capital ratio of 12.0% (exclusive of this issuance), and the funds will be held in an escrow account until the transaction is closed. The majority of the investors are directors, their related affiliates, and executive officers of the Company. Sandler O'Neill & Partners, L.P. served as the financial advisor and Troutman Sanders LLP provided legal advice to the Company in this transaction.
About PAB
The Company is a $1.35 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank operates through 18 branch offices and two loan production offices in 13 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements
Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding the issuance of the preferred stock, the closing of the transaction and the receipt of shareholder approval, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate", "believe", "intend", "plan", "expect", "estimate", "could", "should", "will" and similar expressions are used, you should consider them as identifying forward-looking statements. These forward-looking statements are not guarantees of future performance, and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements including that the conditions to closing the transaction described herein and in the investment agreements are not satisfied or waived and the Company is unable to close the offering; that the Bank does not achieve the total risk-based capital ratio condition contained in the investment agreements; the Company is unable to obtain shareholder approval for the conversion of the preferred stock and the issuance of the warrants, and those other risks and factors discussed in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise these statements following the date of this press release.