Renasant Financial Partners Ltd.
TSX : REN

Renasant Financial Partners Ltd.

September 17, 2008 16:31 ET

Renasant to Repurchase Up to 3.5 Million of Its Common Shares Pursuant to a Substantial Issuer Bid

MISSISSAUGA, ONTARIO--(Marketwire - Sept. 17, 2008) - Renasant Financial Partners Ltd. (TSX:REN)("Renasant" or the "Corporation") announced today that its Board of Directors has authorized the Corporation to proceed with a substantial issuer bid (the "Offer"), pursuant to which the Corporation will offer to purchase for cancellation up to 3.5 million of its outstanding common shares ("Shares") at a price per Share of $1.75. The price represents a premium of approximately 9.3% over the September 15, 2008 closing price of Renasant's Shares on the Toronto Stock Exchange, the last day the Shares traded prior to this announcement. The funds required to pay for Shares purchased pursuant to the Offer, and the payment of related fees and expenses, will be funded by Renasant out of cash on hand.

The Offer is not conditional on any minimum number of Shares being deposited, however, the Offer is subject to other customary conditions. Full details of the Offer, including the procedure for depositing Shares, and an accompanying issuer bid circular and other related documents (collectively, the "Offer Documents") are expected to be mailed to shareholders shortly. The Offer Documents contain important information which should be read carefully before making a decision with respect to the Offer.

Neither Renasant nor its Board of Directors makes any recommendation to any shareholder as to whether to deposit or refrain from depositing Shares. Each shareholder must make his or her own decision whether to deposit Shares and, if so, what number of Shares to deposit. Shareholders are urged to consult their own investment and tax advisors and make their own decisions whether to deposit Shares to the Offer and, if so, how many Shares to deposit. In accordance with applicable securities laws, the Corporation has retained an independent valuator to provide a formal valuation and an opinion on the fair market value of the Shares. The issuer bid circular to be mailed to shareholders will contain the formal valuation of the Shares carried out by The Commercial Capital Corporation.

As of September 16, 2008 there were 8,607,289 Shares issued and outstanding. Assuming that the Offer is fully subscribed, the Offer will result in the purchase by Renasant of 3.5 million Shares, representing approximately 40.7% of the total number of issued and outstanding Shares as September 16, 2008. If more than 3.5 million Shares are deposited under the terms of the Offer, and Shares are taken up pursuant to the Offer, Renasant will purchase the Shares on a pro rata basis according to the number of Shares deposited by each shareholder.

During the last 12 months, pursuant to normal course issuer bids, Renasant purchased for cancellation 15,162 Shares at an average cost of $1.95 per Share. In accordance with applicable Canadian securities laws, the Corporation has suspended purchases of its Shares pursuant to its normal course issuer bid announced on October 4, 2007 until after the expiration date or date of termination of the Offer.

The Offer, once launched, will be open for a minimum bid period of not less than 35 days.

About Renasant Financial Partners Ltd.

The most recent financial information available for Renasant is for the first quarter ending June 30, 2008 as released on July 28, 2008. Further information can be found in the disclosure documents filed by the Corporation with the securities regulatory authorities, available at www.sedar.com or through the Company's website at www.renasant.ca.

As previously outlined in the first quarter news release, the requirements to reflect the bridge loan investments at current fair market value results in a much high level of volatility in both assets and income from that historically experienced by the Company. These investments reflect smaller corporations involved in the resource sector. While the first quarter reflected significant appreciation in value, these values have since declined by approximately $4.8 million before tax as of September 11, 2008 (inclusive of the $2.2 million referenced in the July 28, 2008 release).

Mississauga-based Renasant Financial Partners is an independent financial service provider undertaking debt and equity investments in both private and public companies. The Corporation aims to prudently manage its investment portfolio and the contingent obligations of the Corporation, while exploring various investment opportunities to ensure surplus funds are adequately utilized and returning the balance to the Shareholders.

Forward-Looking Statements

Certain statements in this news release constitute forward-looking statements about future operations, financial results, objectives and strategies of the Company. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", and similar expressions. Such forward looking statements involve risks, uncertainties or other factors, which may cause actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

Actual results may differ materially from expected results if known or unknown risks affect the business, or if estimates or assumptions used in the preparation of this news release turn out to be inaccurate. As a result, there can be no guarantee that any forward-looking statement will materialize. Management disclaims any intention, and assumes no obligation, to update any forward-looking statement, even if new information becomes available, as a result of future events or for any other reason. Readers are urged to consider these and other such factors carefully, and not place undue emphasis on Renasant's forward-looking statements.

When relying on forward-looking statements to make decisions, the Corporation cautions readers not to place undue reliance on these statements, as a number of important factors could cause results to differ materially from any estimates or intentions expressed in such forward-looking statements. Many of such factors are beyond Renasant's control. Risk factors relating to Renasant's business, as discussed in greater detail in the "Risk Factors" section of 2008 Annual Information Form (copies of which may be obtained at www.sedar.com), should be considered carefully. The Corporation does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Corporation except as required by law.

Contact Information

  • For Investor Information: Renasant Financial Partners Ltd.
    Robert D. Wright
    Senior Vice President & Chief Financial Officer
    (905) 281-5897
    Email: bwright@morguard.com
    Website: www.renasant.ca