Atlantic Capital Bancshares, Inc. will boost how it pays for its pending acquisition of FSG Bank in Chattanooga from the original merger deal announced in March.
Under an amended agreement approved by directors of both Atlantic and First Security Group, Atlantic will boost its share of the $160 million deal from 60 percent stock up to between 65 percent and 70 percent stock. The rest of the purchase will be made in cash.
FSG shareholders may elect cash equal to $2.35 per share, stock based on a fixed exchange ratio of 0.188 shares of Atlantic Capital common stock for each FSG share or any combination thereof, subject to the aggregate cash consideration totaling at least 30 percent.
“During the last two months, our management teams have laid the foundation for the integration and operational structure of our combined institution,” said Douglas Williams, CEO of Atlantic Capital. “As we further refined our objectives through this process, we believe that enhancing our capital position by adjusting the cash and stock mix of the transaction will better position us to meet our longer-term objectives.”