0001193125-11-266925.txt : 20111007 0001193125-11-266925.hdr.sgml : 20111007 20111007172725 ACCESSION NUMBER: 0001193125-11-266925 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20111004 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20111007 DATE AS OF CHANGE: 20111007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FNB United Corp. CENTRAL INDEX KEY: 0000764811 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 561456589 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13823 FILM NUMBER: 111133060 BUSINESS ADDRESS: STREET 1: 150 SOUTH FAYETTEVILLE STREET STREET 2: P O BOX 1328 CITY: ASHEBORO STATE: NC ZIP: 27203 BUSINESS PHONE: 3366268300 MAIL ADDRESS: STREET 1: P.O. BOX 1328 CITY: ASHEBORO STATE: NC ZIP: 27204 FORMER COMPANY: FORMER CONFORMED NAME: FNB CORP/NC DATE OF NAME CHANGE: 19920703 8-K 1 d241439d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 4, 2011

 

 

FNB United Corp.

(Exact name of registrant as specified in its charter)

 

 

 

North Carolina   000-13823   56-1456589

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

150 South Fayetteville Street, Asheboro,

North Carolina

  27203
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (336) 626-8300

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 8.01 Other Events

On October 4, 2011, FNB United Corp. (the “Company”) received the necessary approvals from the Federal Reserve Bank of Richmond, acting under authority delegated by the Board of Governors of the Federal Reserve System (the “Federal Reserve”), to acquire Bank of Granite Corporation (“Granite”) through the merger of a wholly owned subsidiary of the Company with and into Granite (the “Merger”), to exchange the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, issued to the U.S. Department of the Treasury for common stock of the Company (“Common Stock”), and to pay deferred dividends on certain of its trust preferred securities. The proposed new directors and officers of the Company have also received nonobjection from the Federal Reserve, as required to assume their positions at the Company upon completion of the Merger and the Company’s proposed $310 million capital raise (the “Recapitalization”). The Company’s primary bank subsidiary, CommunityONE Bank, N.A. (the “Bank”), also received approval, dated October 7, 2011, from the Office of the Comptroller of the Currency of its capital restoration plan and to settle certain debt and preferred stock securities of the Bank held by SunTrust Bank. Each of the foregoing approvals is required in order to consummate the Recapitalization and the Merger.

On October 7, 2011, the Company issued a press release relating to the above matters. The text of the press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference. Also, on October 7, 2011, the Company sent a memo to certain of its employees relating to the above matters. The text of the memo is attached hereto as Exhibit 99.2 and is hereby incorporated by reference.

As previously reported, as part of the Recapitalization, the Company has entered into separate investment agreements, as amended (the “Investment Agreements”), with an affiliate of The Carlyle Group and affiliates of Oak Hill Capital Partners (collectively, the “Lead Investors”) and subscription agreements with certain additional investors (collectively with the Lead Investors, the “Investors”), pursuant to which each Investor agreed, subject to certain conditions, to purchase Common Stock. Also in connection with the Recapitalization and as previously reported, the Company has entered into an Agreement and Plan of Merger with Granite and a wholly owned acquisition subsidiary of the Company (the “Merger Agreement”), pursuant to which the Merger is to be effected.

The closing of the Recapitalization and the Merger remains subject to the following conditions, among others: the closing conditions under the Merger Agreement, the Investment Agreements and the subscription agreements having been satisfied or waived; Company shareholder approval of certain proposals necessary for the Company to consummate the investments, the Merger and the related transactions; the shares of Common Stock to be issued under the Investment Agreements being authorized for listing on NASDAQ; the exchange of the Company’s preferred stock issued to the U.S. Department of the Treasury for Common Stock; the satisfaction of conditions regarding minimum liquidity and non-brokered deposits and the level of non-performing assets; receipt of advice as to the absence of an Internal Revenue Code Section 382 ownership change as a result of the private placement investments; and neither the Company nor Granite having experienced a material adverse effect.


Item 9.01 Financial Statements and Exhibits.

 

No.

  

Description

99.1    Press Release, dated October 7, 2011.
99.2    Memo to Employees of FNB United Corp., dated October 7, 2011.

Additional Information and Where to Find It

The Company has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, including a joint proxy statement/prospectus, in connection with the proposed merger, recapitalization and related matters. The joint proxy statement/prospectus, which has been sent or given to the shareholders of the Company, contains important information. Before making any voting decision, the Company’s shareholders are urged to read the joint proxy statement/prospectus carefully and in its entirety because it contains important information about the Merger, Recapitalization and related matters. The joint proxy statement/prospectus and other relevant materials, and any other documents filed by the Company with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, shareholders will be able to obtain free copies of the joint proxy statement/prospectus by contacting Phoenix Advisory Partners, the Company’s proxy solicitor, at 110 Wall Street, 27th Floor, New York, NY 10005; telephone number (866) 304-2061 (for shareholders) or (212) 493-3910 (for banks and brokers).

Forward-Looking Statements

This Current Report on Form 8-K and the attached exhibits may contain forward-looking statements concerning the Recapitalization and the Merger, the conditions necessary for closing the Recapitalization and the Merger, concerning plans and objectives of management for future operations, concerning future economic performance, or concerning any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and may include the words “believes,” “plans,” “intends,” “expects,” “anticipates,” “forecasts” or words of similar meaning. There can be no assurance that the Company will be able to close on the transactions with Investors and obtain required capital or close on the Merger, or that other actual results, performance or achievements of the Company will not differ materially from those expressed or implied by forward-looking statements. Factors that could cause actual events or results to differ significantly from those described in the forward-looking statements include, but are not limited to, the Company’s ability to complete the proposed transactions and other aspects of its recapitalization and recovery plans. For further information on factors that could cause actual results to materially differ from projections, please see the Company’s publicly available Securities and Exchange Commission filings, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and other filings with the SEC. The Company does not undertake to update any of its forward-looking statements.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  

FNB United Corp.

(Registrant)

October 7, 2011

(Date)

  

/s/ R. Larry Campbell

R. Larry Campbell

President and Chief Executive Officer


INDEX TO EXHIBITS

 

No.

  

Description

99.1    Press Release, dated October 7, 2011.
99.2    Memo to Employees of FNB United Corp., dated October 7, 2011.
EX-99.1 2 d241439dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

For Immediate Release

October 7, 2011

   LOGO   

For More Information

Mark Brock (704) 926-1305

mbrock@wrayward.com

 

John Mader (704) 926-1316

jmader@wrayward.com

LOGO

FNB United Corp. • PO Box 1328, Asheboro, NC 27204 • 150 S. Fayetteville Street, Asheboro, NC 27203

FNB United Receives Regulatory Approval to Acquire Bank of Granite

Shareholder Approval Next Step In Process

ASHEBORO, N.C., (Oct. 7, 2011) – FNB United Corp. (Nasdaq: FNBN), parent company of CommunityONE Bank, N.A., today announced that it has received regulatory approvals for its proposed acquisition of Bank of Granite Corporation (Nasdaq: GRAN), parent company of Bank of Granite.

The Federal Reserve Bank of Richmond has approved FNB’s proposed acquisition of Bank of Granite Corporation through a merger and the exchange of preferred stock issued to the U.S. Treasury for common stock. FNB’s primary bank subsidiary, CommunityONE Bank, has also received approval from the Office of the Comptroller of the Currency (OCC) of its capital restoration plan and settlement of certain debt and preferred stock securities held by SunTrust Bank.

Additionally, the proposed management team for FNB has received clearance from the Federal Reserve to assume their new positions with the company. These approvals were required in order to consummate FNB’s proposed $310 million capital raise and the proposed acquisition of Bank of Granite Corporation.

The merger and recapitalization remain subject to approval by FNB shareholders and Bank of Granite Corporation stockholders, who were issued a joint proxy statement in September. The Bank of Granite Corporation’s special meeting of stockholders is scheduled for Tuesday, October 18, 2011 and the FNB United Corp. annual meeting of shareholders is scheduled for Wednesday, October 19, 2011.

The proposed acquisition of Bank of Granite Corporation by FNB will unite two 100-year-old institutions, creating a North Carolina community banking organization with approximately $2.8 billion in assets, $2.4 billion in deposits and 63 full-service banking offices located in some of the state’s most robust markets.

 

1


The merged organization will be led by Brian Simpson as CEO and Bob Reid as president, with headquarters in Asheboro, N.C. Simpson and Reid led a successful $310 million capital raise by FNB, which includes The Carlyle Group and Oak Hill Capital Partners as lead investors, each having entered into definitive agreements with FNB to invest $79 million, each subject to conditions contained in the investment agreements.

Contingencies

The closing of the recapitalization and the merger remains subject to the following conditions, among others: satisfaction or waiver of the closing conditions under the merger agreement with Bank of Granite Corporation, the investment agreements with affiliates of The Carlyle Group and Oak Hill Capital Partners and the subscription agreements with additional investors; FNB shareholder approval of certain proposals necessary for FNB to consummate the investments, the merger and the related transactions; the shares of common stock to be issued under the investment agreements being authorized for listing on NASDAQ; the exchange of FNB’s preferred stock issued to the U.S. Department of the Treasury for common stock; the satisfaction of conditions regarding minimum liquidity and non-brokered deposits and the level of non-performing assets; receipt of advice as to the absence of an Internal Revenue Code Section 382 ownership change as a result of the private placement investments; and neither FNB nor Bank of Granite Corporation having experienced a material adverse effect.

About FNB United Corp.

FNB United Corp. is the Asheboro, N.C.-based bank holding company for CommunityONE Bank, N.A. Opened in 1907, CommunityONE Bank operates 45 offices in 38 communities throughout central, southern and western North Carolina, and offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.

About Bank of Granite Corporation

Bank of Granite Corporation is the parent company of Bank of Granite. Founded in 1906, Bank of Granite operates 18 full-service banking offices in seven North Carolina counties – Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes.

 

2


Additional Information and Where to Find It

FNB has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, including a joint proxy statement/prospectus, in connection with the proposed merger, recapitalization and related matters. The joint proxy statement/prospectus, which has been sent or given to the shareholders of FNB, contains important information. Before making any voting decision, FNB’s shareholders are urged to read the joint proxy statement/prospectus carefully and in its entirety because it contains important information about the merger, recapitalization and related matters. The joint proxy statement/prospectus and other relevant materials, and any other documents filed by FNB with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, shareholders will be able to obtain free copies of the joint proxy statement/prospectus by contacting Phoenix Advisory Partners, FNB’s proxy solicitor, at 110 Wall Street, 27th Floor, New York, NY 10005; telephone number (866) 304-2061 (for shareholders) or (212) 493-3910 (for banks and brokers).

Forward-Looking Statements

This press release and the attached exhibits may contain forward-looking statements concerning the recapitalization and the merger, the conditions necessary for closing the recapitalization and the merger, concerning plans and objectives of management for future operations, concerning future economic performance, or concerning any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and may include the words “believes,” “plans,” “intends,” “expects,” “anticipates,” “forecasts” or words of similar meaning. There can be no assurance that FNB will be able to close on the transactions with investors and obtain required capital or close on the merger, or that other actual results, performance or achievements of FNB will not differ materially from those expressed or implied by forward-looking statements. Factors that could cause actual events or results to differ significantly from those described in the forward-looking statements include, but are not limited to, FNB’s ability to complete the proposed transactions and other aspects of its recapitalization and recovery plans. For further information on factors that could cause actual results to materially differ from projections, please see FNB’s publicly available Securities and Exchange Commission filings, including FNB’s Annual Report on Form 10-K for the year ended December 31, 2010 and other filings with the SEC. FNB does not undertake to update any of its forward-looking statements.

 

3

EX-99.2 3 d241439dex992.htm MEMO TO EMPLOYEES OF FNB UNITED CORP Memo to Employees of FNB United Corp

Exhibit 99.2

LOGO

 

Date:      October 7, 2011
To:      CommunityONE Employees
From:      Larry Campbell, Bob Reid and Brian Simpson
Re:      Regulatory Approval

We are pleased to announce that FNB United Corp. has received approval from the Federal Reserve Bank of Richmond to acquire Bank of Granite Corporation, and CommunityONE has received approval from the OCC of its capital restoration plan and its debt settlement plan with SunTrust Bank. In addition, the proposed management team has received clearance from the Federal Reserve to assume their new positions with the company. All of these approvals were required in order to complete the company’s proposed $310 million capital raise and the proposed acquisition of Bank of Granite.

The merger and recapitalization remain subject to approval by FNB shareholders and Bank of Granite stockholders, who were issued a joint proxy statement in September. The Bank of Granite Corporation’s special meeting of stockholders is scheduled for Tuesday, October 18, 2011 and the FNB United Corp. annual meeting of shareholders is scheduled for Wednesday, October 19, 2011.

This is exciting news for our company, and we look forward to providing you with additional updates soon. In the meantime, please continue to submit your feedback using the Service Requests feature located on the home page of Jack or by sending an e-mail to the new merger mailbox at Merger@MyYesBank.com.

Additional Information and Where to Find It

FNB United Corp. has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, including a joint proxy statement/prospectus, in connection with the proposed merger, recapitalization and related matters. The joint proxy statement/prospectus, which has been sent or given to the shareholders of FNB United Corp., contains important information. Before making any voting decision, shareholders of FNB United Corp. are urged to read the joint proxy statement/prospectus carefully and in its entirety because it contains important information about the merger, recapitalization and related matters. The joint proxy statement/prospectus and other relevant materials, and any other documents filed by FNB United Corp. with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, shareholders will be able to obtain free copies of the joint proxy statement/prospectus by contacting Phoenix Advisory Partners, FNB United’s proxy solicitor, at 110 Wall Street, 27th Floor, New York, NY 10005; telephone number (866) 304-2061 (for shareholders) or (212) 493-3910 (for banks and brokers).

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