Filing Details

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

 

SCHEDULE 13D

 

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

(Name of Issuer)

 

(Title of Class of Securities)

 

(CUSIP Number)

 

Castle Creek Capital Partners VII, LP

6051 El Tordo

PO Box 1329

Rancho Santa Fe, CA 92067

858-756-8300

 

Copy to:

 

John M. Eggemeyer

c/o Castle Creek Capital

6051 El Tordo

P.O. Box 1329

Rancho Santa Fe, CA 92067

(Name, Address and Telephone Number of Person Authorized

to Receive Notices and Communications)

 

(Date of Event which Requires Filing of this Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1 (e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

 

* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.  The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (the Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See §240.13d-7 for other parties to whom copies are to be sent.

 

 

 

1	NAME OF REPORTING PERSONS Castle Creek Capital Partners VII, LP
2	CHECK THE APPROPRIATE BOX IF A MEMBER  OF A GROUP          (a) o (See Instructions)                                                                                                   (b) o
3	SEC USE ONLY
4	SOURCE OF FUNDS (See Instructions) WC
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) o
6	CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH		7	SOLE VOTING POWER 0
		8	SHARED VOTING POWER 504,299 (1)
		9	SOLE DISPOSITIVE POWER 0
		10	SHARED DISPOSITIVE POWER 504,299 (1)
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 504,299 (1)
12	CHECK IF THE AGGREGATE AMOUNT  IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.4% (1)
14	TYPE OF REPORTING PERSON (See Instructions) PN (Limited Partnership)

 

(1)                                 The information set forth in Item 5 of this statement on Schedule 13D is incorporated herein by reference.

 

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1	NAME OF REPORTING PERSONS Castle Creek Capital VII LLC
2	CHECK THE APPROPRIATE BOX IF A MEMBER  OF A GROUP          (a) o (See Instructions)                                                                                                   (b) o
3	SEC USE ONLY
4	SOURCE OF FUNDS (See Instructions) WC/AF
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) o
6	CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH		7	SOLE VOTING POWER 0
		8	SHARED VOTING POWER 504,299 (1)
		9	SOLE DISPOSITIVE POWER 0
		10	SHARED DISPOSITIVE POWER 504,299 (1)
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 504,299 (1)
12	CHECK IF THE AGGREGATE AMOUNT  IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.4% (1)
14	TYPE OF REPORTING PERSON (See Instructions) OO (Limited Liability Company), HC (Control Person)

 

(1)                                 The information set forth in Item 5 of this statement on Schedule 13D is incorporated herein by reference.

 

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This Amendment No. 1 to Schedule 13D (this Amendment No. 1) amends and supplements the Schedule 13D filed on December 23, 2019 (the Original Schedule 13D, and as amended by this Amendment No. 1, the Schedule 13D) with the U.S. Securities and Exchange Commission (the SEC), relating to the shares of common stock, par value $0.01 per share (Common Stock), of Central Federal Corporation (the Issuer or the Company).  Unless specifically amended hereby, the disclosures set forth in the Schedule 13D remain unchanged.  Capitalized terms used in this Amendment No. 1 that are not otherwise defined herein have the meanings attributed to them in the Original Schedule 13D.

 

Item 2.                                                        Identity and Background

 

Item 2 of the Schedule 13D is hereby amended to remove John M. Eggemeyer and John T. Pietrzak as Reporting Persons.  Following the recent establishment of a six-person investment committee by Castle Creek Capital VII LLC (CCC VII), the general partner of Castle Creek Capital Partners VII, LP (Fund VII), no person other than Fund VII and CCC VII presently has beneficial ownership (as defined in Rule 13d-3 under the Act) of the shares of Common Stock held by Fund VII.

 

Item 3.                                                        Source and Amount of Funds or Other Consideration

 

Item 3 of the Schedule 13D is hereby amended and supplemented by adding the following:

 

On March 30, 2020, Fund VII and the Company entered into an exchange agreement (the Exchange Agreement), pursuant to which Castle Creek exchanged 27,000 shares of Common Stock (the Exchanged Shares) into 270 shares (the New Shares) of Series C Preferred Stock (as defined and described in the Original Schedule 13D) on the terms and conditions set forth in the Exchange Agreement.  The Exchanged Shares constituted the sole source of consideration for the New Shares.  Following such exchange, Fund VII owns 504,299 shares of Common Stock and 11,840 shares of Series C Preferred Stock.

 

The foregoing references to and descriptions of the Exchange Agreement, and the transactions contemplated thereby, do not purport to be complete and are subject to, and qualified in their entirety by reference to, the full text of the Exchange Agreement, which is attached hereto as Exhibit 99.6 and incorporated herein by reference.

 

Item 4.                                                        Purpose of Transaction

 

Item 4 of the Schedule 13D is hereby amended and supplemented by adding the following:

 

Fund VII exchanged the Exchanged Shares into the New Shares to reduce Fund VIIs ownership of the Companys voting securities in order to accommodate the Companys stock repurchase program previously announced by the Company in its Current Report on Form 8-K filed with the SEC on March 13, 2020.  Pursuant to applicable bank regulatory limitations, Fund VII and its affiliates may not exceed 9.99% ownership of the Companys voting securities without seeking applicable regulatory approvals.  Reducing Fund VIIs ownership of the Companys voting securities therefore allows the Company to commence such repurchase program without causing Fund VII to exceed such ownership threshold (although further dispositions by Fund VII of the shares of Common Stock currently held by it may be required depending on the volume of the Companys repurchases). 

 

Fund VII intends to evaluate the desirability of effecting additional acquisitions of the Common Stock in light of the current price per share of the Common Stock, Fund VIIs belief about the long-term investment prospects of the Common Stock and general economic and market conditions, and Fund VII may effect such acquisitions at any time.

 

Item 5.                                                        Interest in Securities of the Issuer

 

Item 5 (a) - (c) of the Schedule 13D is hereby amended and restated in its entirety as follows:

 

(a) and (b)

 

Reporting Person		Amount Beneficially Owned (2)		Percent of Class (3)		Sole Power to Vote or Direct the Vote		Shared Power to Vote or Direct the Vote		Sole Power to Dispose or to Direct the Disposition		Shared Power to Dispose or Direct the Disposition
Castle Creek Capital Partners VII, LP		504,299		9.4	%	0		504,299		0		504,299
Castle Creek Capital VII LLC (1)		504,299		9.4	%	0		504,299		0		504,299

 

(1)                                 CCC VII disclaims beneficial ownership of the Common Stock owned by Fund VII, except to the extent of its pecuniary interest therein.

 

(2)                                 Excludes (i) 11,840 shares (including the New Shares) of Series C Preferred Stock (which would be convertible into an aggregate of 1,184,000 shares of Common Stock) and (ii) restricted stock awards representing 1,650 underlying shares of Common Stock issued to Castle Creek Advisors IV LLC (Advisors IV) on behalf of John Pietrzak in his capacity as a member of the Board, which awards vest over a three-year period.  Since Fund VII does not presently, and will not within the next 60 days, have the right to acquire Common Stock in respect of such Series C Preferred Stock (due in part to the limitations previously described in the Schedule 13D) and such restricted stock awards, those underlying shares are not included in the amount reported herein.

 

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(3)                                 This calculation is based on 5,346,858 shares of Common Stock of the Company outstanding, which is based on (i) 5,373,858 shares of Common Stock outstanding as of March 8, 2020, as reported by the Company in its Annual Report on Form 10-K filed with the SEC on March 16, 2020, and (ii) adjusted for the 27,000 shares of Common Stock exchanged pursuant to the Exchange Agreement.

 

(c)

 

The information set forth in Item 3 is incorporated herein by reference. Except for the exchange of the Exchanged Shares into the New Shares, none of the Reporting Persons had any transactions in the Common Stock (or securities convertible into the Common Stock) or other equity securities of the Company during the past 60 days.

 

Item 6.                                                        Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

 

Item 6 of the Schedule 13D is hereby amended and supplemented by adding the following:

 

Items 3 and 4 of this Amendment No. 1 are incorporated herein by reference.

 

The rights, preferences, designations and other terms and conditions of the Series C Preferred Stock (which, following the transactions described in Item 3, includes the New Shares) are described in Item 6 of the Original Schedule 13D.

 

The following is a description of certain terms of the Exchange Agreement:

 

Representations and Warranties.  Pursuant to the Exchange Agreement, the Company made customary representations and warranties to Fund VII relating to, among other things, the Company, the issuance of the New Shares and authorization to enter into the transaction.  Fund VII also made customary representations and warranties to the Company regarding, among other things, Fund VIIs valid organization and authorization to enter into the transaction. The Companys and Fund VIIs representations and warranties survive the Closing indefinitely.

 

The foregoing references to and descriptions of the Exchange Agreement, and the transactions contemplated thereby, do not purport to be complete and are subject to, and are qualified in their entirety by reference to, the full text of the Exchange Agreement, which is attached hereto as Exhibit 99.6 and incorporated herein by reference.

 

Item 7.                                                        Material to Be Filed as Exhibits

 

Exhibit		Description
Exhibit 99.6		Exchange Agreement, dated as of March 30, 2020, by and between Castle Creek Capital Partners VII, LP and Central Federal Corporation.
Exhibit 99.7		Joint Filing Agreement, dated as of March 31, 2020, by and between Castle Creek Capital Partners VII, LP and Castle Creek Capital VII LLC.

 

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SIGNATURES

 

After reasonable inquiry and to the best of the knowledge and belief of the undersigned, the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Dated: March 31, 2020

 

	CASTLE CREEK CAPITAL PARTNERS VII, LP
	By:	/s/ John M. Eggemeyer
	Name:	John M. Eggemeyer
	Title:	Managing Principal
	CASTLE CREEK CAPITAL VII LLC
	By:	/s/ John M. Eggemeyer
	Name:	John M. Eggemeyer
	Title:	Managing Principal

 

SIGNATURE PAGE TO SCHEDULE 13D AMENDMENT NO. 1 (CENTRAL FEDERAL CORPORATION)

 

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