Keefe, Bruyette & Woods Reacts To CommunityOne Bancorp Private Placement

In a report published Wednesday, Keefe, Bruyette & Woods analyst Frank Barlow reiterated a Market Perform rating and $11.50 price target on CommunityOne Bancorp (NASDAQ: COB).

In the report, Keefe, Bruyette & Woods noted, “This evening, COB announced it completed a $25M private placement to existing shareholders that participated in the original 2011 recap, including PE investors Carlyle and Oak Hill. The deal was completed at $10.56/shr or ~1.0x pro forma TBVPS, including recapture of its large DTA valuation allowance. The raise should add ~112 bpts of TCE to 5.3% (11.6% including complete recapture) and burden EPS $0.04-$0.06/shr in 2015/2016, by our estimation.”

CommunityOne Bancorp closed on Tuesday at $11.45.