AnchorBank gains loan extension
Just in time, Anchor BanCorp Wisconsin Inc. (ABCW) announced Monday an agreement to amend the terms of its outstanding line of credit with U.S. Bank.
Under the terms of the amendment, the company was not required to make a principal reduction on March 2 as previously negotiated. Also, under the terms of the amendment the balance of the $116.3 million loan is now due by May 29.
The loan was secured from U.S. Bank, in part, to fund AnchorBank's acquisition of 13 S&C Bank branches in 2008. Some of those branches included financial institutions in New Richmond, Star Prairie, Somerset, River Falls and Hudson.
Last week, AnchorBank officials reported that U.S. Bank was poised to take over Wisconsin-based corporation if a $60 million wasn't made by Monday. U.S. Bank and AnchorBank officials have been negotiating a new payback plan for several days.
"This amended credit agreement with U.S. Bank provides us with additional time needed to work towards finalizing a financing strategy appropriate to the realities of today's capital markets," said Doug Timmerman, chairman and CEO.
"At this point we are waiting for the capital markets to warm to the financial sector, which will help position us to implement an appropriate long term capital strategy," added Timmerman.
AnchorBank has offices in 62 Wisconsin cities. They employ some 998 full-time and 172 part-time employees across the state, according to their Web site.