Foothill Group Agrees to Sell 100,000 Shares
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Foothill Group Inc., a financial services company with headquarters in Agoura Hills and Los Angeles, said it agreed to sell 100,000 shares of convertible preferred stock to Recovery Equity Investors L.P. for $3 million.
Foothill also said it would increase its board of directors to eight members in order to add two representatives of Recovery Equity, a Delaware limited partnership.
The deal came as the Foothill Group was negotiating with the Federal Deposit Insurance Corp. to boost capital at its Foothill Thrift and Loan unit. The company said it would invest the proceeds from the securities sale in the thrift and loan, which is a wholly owned subsidiary.
Each of the convertible preferred shares, which are entitled to a 9% annual dividend, is convertible into 6.67 shares of Class A common stock of Foothill Group at a conversion price of $4.50 a share.
The Foothill Group said certain regulatory approvals are needed before the sale can be completed.
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