This excerpt taken from the CLFC 8-K filed Dec 16, 2008.
Funds Strengthen Companys Capital Levels, Liquidity, Lending Capacity
LOS ANGELES December 12, 2008 Center Financial Corporation (NASDAQ: CLFC), the holding company of Center Bank, today announced the receipt of $55 million of new capital through the United States Department of the Treasurys Capital Purchase Program.
Participation in the Treasurys Capital Purchase Program underscores the companys strong financial standing and provides Center Financial with an opportunistic source of low-cost capital, said Jae Whan (J.W.) Yoo, president and chief executive officer. In addition to strengthening our capital levels, the new funding enhances the companys liquidity and boosts our capacity to prudently support the financial needs of the small and mid-sized businesses in our core communities.
As part of the program, Center Financial entered into a purchase agreement with the U.S. Treasury on December 12, 2008, pursuant to which the company agreed to issue and sell 55,000 shares of Centers fixed-rate cumulative perpetual preferred stock and a 10-year warrant to purchase 864,780 shares of the companys common stock at an exercise price of $9.54 per share. The company will pay the government a five percent dividend annually for each of the first five years of the investment and nine percent dividend thereafter until the shares are redeemed.
Additional details of the companys participation in the Treasurys Capital Purchase Program, along with a copy of the purchase agreement, will be included in a Form 8-K, which will be furnished in the near future by Center Financial Corporation to the Securities and Exchange Commission and will be made available in the investor relations section of the companys Web site, www.centerbank.com.