Provident Bankshares to offer stock in Europe

September 17, 1994|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

Seeking additional capital to support its growth, the holding company for Provident Bank of Maryland yesterday announced it has agreed to sell 550,000 shares of stock in Europe to raise between $13 million and $15 million.

"This will fund our growth over the next year and a half," said Peter M. Martin, president and chief operating officer of the Provident Bankshares Corp., the parent of Provident Bank. Mr. Martin said that the company decided to sell the stock to about 35 institutional investors in Europe because it was easier than selling new stock in the United States.

The sale will be closed on Oct. 6 and is being handled by the London office of Fox-Pitt, Kelton N.V., a Netherlands Antilles banking firm. No Provident stock will be sold on European exchanges, a spokeswoman said.

Mr. Martin said the sale will help maintain the bank's well capitalized position and aid in its growth in loans, which have increased from $691 million in 1991 to $1.2 billion at the end of June.

The sale price will be tied to the stock's price on the Nasdaq stock market during an unspecified period of time, Mr. Martin said. The company would not give the exact amount to be raised, only saying that it will be less than $15 million or 10 percent of the company's market value. Based on yesterday's closing price of $24.25 a share, $13.3 million would be raised with the offering.

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