Vesta Insures $25M Preferred Offering

Vesta Insurance Group Inc. of Birmingham, Ala., recently placed $25 million of preferred stock with Birmingham Investment Group LLC, according to a Securities and Exchange Commission filing.

The company sold 2.95 million shares of Series A convertible preferred stock to Birmingham at $8.50 per share. Each preferred share is convertible into two shares of common stock at $4.25 per share and carries a 9% annual dividend.

Birmingham Investment Group is led by James A. Taylor, chairman and chief executive of The Banc Corp. He and one other Birmingham representative will join Vesta’s board of directors in conjunction with the deal.

The proceeds will be used to reduce outstanding debt under its credit agreement.

Also, Banc Corp. is providing Vesta with a new two-year $20 million revolving credit facility priced at the prime rate.

Vesta provides property insurance, preferred and non-standard auto insurance, and coverage for financial institutions and motorcycle dealerships. The company realized revenue of $553 million last year.