Sky Financial Group Inc., the Bowling Green, Ohio-based corporate parent of Sky Insurance, has announced that it has sold $50 million in subordinated notes. The notes were issued and sold in a
private offering pursuant to an applicable exemption under the Securities Act.
The notes are due April 1, 2013, and will receive distributions at a fixed rate of 5.35 percent per annum. The closing for the offering occurred on March 12, 2003.
The proceeds primarily will be used in connection with Sky’s acquisition of Metropolitan Financial Corp., which is expected to close on April 30, 2003.
Sky intends to use part of the proceeds to pay the shareholders of Metropolitan who elect to receive cash as consideration in exchange for their Metropolitan common shares pursuant to the terms of the pending acquisition. After the acquisition closes, Sky also intends to use part of the proceeds to redeem Metropolitan’s existing $14 million of subordinated debt.
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