Sec Form 13D Filing - Castle Creek Capital Partners VIII LP filing for Third Coast Bancshares Inc. (TCBX) - 2023-05-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

 

SCHEDULE 13D

 

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

THIRD COAST BANCSHARES, INC.

(Name of Issuer)

 

Common Stock, par value $1.00 per share

(Title of Class of Securities)

 

88422P109

(CUSIP Number)

 

Castle Creek Capital Partners VIII, LP

11682 El Camino Real, Suite 320

San Diego, CA 92130

858-756-8300

(Name, Address and Telephone Number of Person Authorized

to Receive Notices and Communications)

 

May 4, 2023

(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. ¨

 

* The remainder of this cover page shall be filled out for a reporting person’s 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 (See Instructions)	(a) ¨ (b) ¨
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) ¨
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 155,000 (1)
	9	SOLE DISPOSITIVE POWER 0
	10	SHARED DISPOSITIVE POWER 155,000 (1)

11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 155,000 (1)
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.04% (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.

 

 

1	NAME OF REPORTING PERSONS Castle Creek Capital VII LLC
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)	(a) ¨ (b) ¨
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) ¨
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 155,000 (1)
	9	SOLE DISPOSITIVE POWER 0
	10	SHARED DISPOSITIVE POWER 155,000 (1)

11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 155,000 (1)
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.04% (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.

 

 

1	NAME OF REPORTING PERSONS Castle Creek Capital Partners VIII, LP
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)	(a) ¨ (b) ¨
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) ¨
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 1,107,729 (1)
	9	SOLE DISPOSITIVE POWER 0
	10	SHARED DISPOSITIVE POWER 1,107,729 (1)

11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,107,729 (1)
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.43% (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.

 

 

1	NAME OF REPORTING PERSONS Castle Creek Capital Partners VIII Co-Investment Fund A, LP
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)	(a) ¨ (b) ¨
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) ¨
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 212,315 (1)
	9	SOLE DISPOSITIVE POWER 0
	10	SHARED DISPOSITIVE POWER 212,315 (1)

11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 212,315 (1)
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.42% (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.

 

 

1	NAME OF REPORTING PERSONS Castle Creek Capital VIII LLC
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)	(a) ¨ (b) ¨
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) ¨
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 1,320,044 (1)
	9	SOLE DISPOSITIVE POWER 0
	10	SHARED DISPOSITIVE POWER 1,320,044 (1)

11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,320,044 (1)
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.86% (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.

 

 

This Amendment No. 1 to Schedule 13D (this “Amendment No. 1”) amends and supplements the Schedule 13D filed on October 7, 2022 (the “Schedule 13D”) with the U.S. Securities and Exchange Commission (the “SEC”), relating to the shares of common stock, par value $1.00 per share (“Common Stock”), of Third Coast Bancshares, Inc. (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 Schedule 13D.

 

Item 2.

Identity and Background

 

Item 2 of the Schedule 13D is hereby amended and supplemented by adding the following:

 

(a)-(c)

Each of the following are added as Reporting Persons: (i) Castle Creek Capital Partners VII LP (“Fund VII”), a Delaware limited partnership and a private equity fund focused on investing in community banks throughout the United States of America, and (ii) Castle Creek Capital Partners VII LLC (“CCC VII” and together with Fund VII, the “Fund VII Entities”), a Delaware limited liability company, whose principal business is to serve as the sole general partner of, and manage, Fund VII.

 

(d)

 

During the last five years, none of the Reporting Persons has been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors).

 

(e)

 

During the last five years, none of the Reporting Persons has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

(f)

 

N/A.

 

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 May 4, 2023, Fund VII engaged in various open-market, broker acquisitions of additional shares of Common Stock, acquiring an aggregate of 155,000 shares of Common Stock at an aggregate cost of approximately $1,991,812. Such shares were acquired using cash on hand.

 

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 (3)(4)				Percent of Class (5)				Sole Power to Vote or Direct the Vote				Shared Power to Vote or Direct the Vote (1)(2)				Sole Power to Dispose or to Direct the Disposition				Shared Power to Dispose or Direct the Disposition (1)(2)
Castle Creek Capital Partners VII, LP			155,000				1.04	%			0				155,000				0				155,000
Castle Creek Capital VII LLC (1)			155,000				1.04	%			0				155,000				0				155,000
Castle Creek Capital Partners VIII, LP			1,107,729				7.43	%			0				1,107,729				0				1,107,729
Castle Creek Capital Partners VIII Co- Investment Fund A, LP			212,315				1.42	%							212,315								212,315
Castle Creek Capital VIII LLC (2)			1,320,044				8.86	%			0				1,320,044				0				1,320,044

 

(1)

CCC VII disclaims beneficial ownership of the Common Stock owned by Fund VII, except to the extent of its pecuniary interest therein. Additionally, the shares of Common Stock owned by the Fund VIII Entities are not included in the amounts or percentages reported herein by the Fund VII Entities, as the Fund VII entities do not have beneficial ownership (as defined in Rule 13d-3 under the Act) of the shares of Common Stock owned by Fund VIII.

 

 

(2)

CCC VIII disclaims beneficial ownership of the Common Stock owned by Fund VIII and Fund VIII Co-Invest, except to the extent of its pecuniary interest therein. Additionally, the shares of Common Stock owned by the Fund VII Entities are not included in the amounts or percentages reported herein by the Fund VIII Entities, as the Fund VIII entities do not have beneficial ownership (as defined in Rule 13d-3 under the Act) of the shares of Common Stock owned by Fund VII.

 

(3)

Represents the number of shares of Common Stock issuable upon conversion of Series A Preferred Stock (based upon the Conversion Rate as of the date hereof as set forth in the Certificate of Designation, Preferences and Rights of the Series A Preferred Stock filed by the Company with the Secretary of State of the State of Texas on September 30, 2022 (the “Series A Certificate of Designation”)), subject to the limitations described in footnote (4) below.

 

(4)

Excludes 268,845 shares of Common Stock issuable upon conversion of 6,049 shares of Series A Preferred Stock (based upon the Conversion Rate as of the date hereof as set forth in the Series A Certificate of Designation) held by the Fund VIII Entities (due to the legal and contractual restrictions on the Fund VIII Entities’ ownership of Common Stock described herein) and all of the Warrants. Since Fund VIII does not presently, and will not within the next 60 days, have the right to acquire Common Stock in respect of such Series A Preferred Stock and the Warrants (due in part to the limitations described in Item 6 of the Schedule 13D), those underlying shares are not included in the amount reported herein.

 

(5)

This calculation is based on 14,899,542 shares of Common Stock outstanding, which was calculated based on (i) 13,579,498 shares of Common Stock of the Company outstanding as of March 27, 2023, as reported in the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 20, 2023, and increased by (ii) 1,320,044 shares of Common Stock underlying 29,701 shares of Series A Preferred Stock (which is the maximum number of shares of Series A Preferred Stock that the Fund VIII Entities would be permitted to convert into Common Stock based upon the limitations in the Investment Agreement, the Series A Certificate of Designation and other agreements and applicable law). Based on the foregoing calculations, the Fund VII Entities and the Fund III Entities collectively own 9.9% of the issued and outstanding shares of Common Stock

 

Item 5(e) of the Schedule 13D is hereby amended and supplemented as follows:

 

Fund VII engaged in the following transactions with respect to the Common Stock during the last sixty days: on May 4, 2023, Fund VII acquired 155,000 shares of Common Stock at a weighted average price per share of $12.85 (in various open-market, broker transactions ranging from $12.32 to $13.115 per share, inclusive). The Reporting Persons undertake to provide to the Issuer, any security holder of the Issuer, or the staff of the SEC, upon request, full information regarding the number of shares purchased at each separate price within the ranges set forth in this Item 5(c).

 

Item 7.

Material to Be Filed as Exhibits

 

Exhibit		Description
Exhibit 99.1		Joint Filing Agreement, dated as of May 8, 2023, by and among Castle Creek Capital Partners VII, LP, Castle Creek Capital VII LLC, Castle Creek Capital Partners VIII, LP, Castle Creek Capital Partners VIII Co-Investment Fund A, LP and Castle Creek Capital VIII LLC.

 

 

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: May 8, 2023

 

	CASTLE CREEK CAPITAL PARTNERS VII, LP
	By:	/s/ Tony Scavuzzo
	Name:	Tony Scavuzzo
	Title:	Managing Principal
	CASTLE CREEK CAPITAL VII LLC
	By:	/s/ Tony Scavuzzo
	Name:	Tony Scavuzzo
	Title:	Managing Principal
	CASTLE CREEK CAPITAL PARTNERS VIII, LP
	By:	/s/ Tony Scavuzzo
	Name:	Tony Scavuzzo
	Title:	Managing Principal
	CASTLE CREEK CAPITAL PARTNERS VIII CO-INVESTMENT FUND A, LP
	By:	/s/ Tony Scavuzzo
	Name:	Tony Scavuzzo
	Title:	Managing Principal
	CASTLE CREEK CAPITAL VIII LLC
	By:	/s/ Tony Scavuzzo
	Name:	Tony Scavuzzo
	Title:	Managing Principal