Provident Financial Group, Inc.
Announces Sale of $150 Million of Equity Units
Cincinnati, June 7, 2002 - Provident Financial Group, Inc. (Nasdaq:
PFGI) announced today that it priced $150 million of equity units
issued by it and its newly formed Real Estate Investment Trust (REIT),
PFGI Capital Corporation. Provident Financial Group's main subsidiary,
The Provident Bank, owns 100 percent of the common equity of the new
entity.
The securities are priced at $25 per unit, with a coupon rate of 9
percent, and a conversion premium of 19 percent above Provident's
closing common stock price of $24.42 on June 6, 2002.
Robert L. Hoverson, Provident's President and Chief Executive Officer
commented, "This transaction further strengthens our balance sheet by
significantly improving our capital ratios and is part of our overall
strategic plan to change the risk profile of the company. The ratings
agencies accord this security very high equity content and it qualifies
as Tier I regulatory capital."
The sale was made under Provident's registration statement filed with
the Securities and Exchange Commission that became effective on June 6,
2002. The offering is expected to close on June 12, 2002.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein. The
offering may be made only by means of a prospectus, copies of which may
be obtained from Merrill Lynch.
About Provident Financial Group, Inc.
Provident Financial Group, Inc. is a bank holding company located in
Cincinnati, Ohio. Its main subsidiary, The Provident Bank, provides a
diverse line of banking and financial products and services regionally;
selected business activities are also conducted nationally. Consumer,
small business, and investment products and services are offered
through a network of retail financial centers located primarily within
Southwestern Ohio and Northern Kentucky. Provident also has a growing
presence on the West Coast of Florida with 13 retail financial centers.
Commercial banking products and services are offered through nine
regional offices. Customers have access to banking services 24-hours a
day through Provident's extensive network of ATMs, TelebankSM, a
telephone customer service center, and the Internet at
www.providentbank.com. As of March 31, 2002, Provident Financial Group
had $10.2 billion loans outstanding, $8.9 billion in deposits, and
assets of $15.4 billion. Provident has served the financial needs of
its customers for 100 years, and currently 3,200 Provident associates
serve approximately 600,000 customers.
For further information, please contact:
Christopher J. Carey
Executive Vice President and Chief Financial Officer
513-639-4644 / 800-851-9521
e-mail: InvestorRelations@provident-financial.com
