Terminates Merger Agreement with Trustmark
STARKVILLE, Miss.–Cadence Financial Corporation (NASDAQ: CADE), the parent company of Cadence Bank, N.A., a bank holding company whose principal subsidiary is Cadence Bank, N.A., today announced that it has agreed to be acquired by Community Bancorp LLC (“CBC”), a Delaware limited liability company formed to invest in community banks. CBC has agreed to acquire Cadence through the merger of a newly formed subsidiary of CBC with and into Cadence, with Cadence as the surviving corporation. Cadence also announced that it has terminated its previously announced agreement with Trustmark Corporation (NASDAQ: TRMK).
Under the agreement, Cadence shareholders will receive $2.50 in cash per Cadence common share. CBC has offered to purchase the $44.0 million of Cadence preferred stock and the associated warrant issued to the U.S. Department of the Treasury (“Treasury”) under the Capital Purchase Program (“CPP”) for $38 million in cash. Treasury has indicated its willingness to agree to sell its Cadence preferred stock and warrant for such cash consideration subject to the entry into definitive documentation acceptable to Treasury in its sole discretion.
“I am pleased to announce this transaction with CBC will deliver more value to our shareholders,” said Lewis F. Mallory Jr., Chairman and Chief Executive Officer of Cadence. “The cash price per share represents a premium to our current trading price and represents a higher, more certain price than what had been previously offered.