Heritage Commerce suspends TARP dividend

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Related Companies Heritage Commerce Corp (HTBK)

Related Documents 8-K Heritage Commerce Corp 11/6/2009, filed on 11/6/2009

Related Articles 11/24/2008 Heritage Commerce raises $40 million under TARP

Related Issues in Focus The World According to TARP

Related Offerings 11/5/2008 $40M Preferred Equity

Heritage Commerce Corp said in a Form 8-K filed Nov. 6 that it decided to exercise its right to suspend cash dividends on its outstanding series A preferred stock.

The dividend suspension takes effect with what would have otherwise been the regularly scheduled quarterly dividend payment Nov. 16.

The company has also decided to defer regularly scheduled interest payments on its outstanding $23.7 million in junior subordinated notes related to its trust preferred securities. The respective trusts will also suspend the declaration and payment of dividends on the trust preferred securities during this period. The deferral takes effect with what would have otherwise been the regularly scheduled quarterly interest payments in December.

During the deferral period, the company is, with limited exceptions, barred from actions such as paying cash dividends on or repurchasing common stock or preferred stock or making any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated notes.