By Nicole De Dios
Kansas City, Mo.-based Citizens Bancshares Co. has redeemed $23.8 million of its remaining series A and B fixed-rate cumulative preferred stock issued under the U.S. Treasury’s Troubled Asset Relief Program.
The redemption was funded through the issuance of more than $2 million in common stock to directors and of $13 million in common stock to Castle Creek Capital Fund VI — at $32.55 per share. The company also incurred $7.5 million of senior debt.
Under Citizens’ agreement with Castle Creek, the latter’s principal, Tony Scavuzzo, joins Citizens’ board.