[The South Financial Group, Inc. Logo]
102 South Main Street
Greenville, SC 29601
864.255.4919
PRESS RELEASE
Date: January 8, 2001
Release Time: Immediate
THE SOUTH FINANCIAL GROUP COMMENCES REIT PREFERRED OFFERING
GREENVILLE, SC - The South Financial Group, Inc. (Nasdaq/NM: TSFG) today
announced that Carolina First Bank, its wholly-owned banking subsidiary, had
commenced an offering of REIT preferred shares. The issuer of the securities is
Carolina First Mortgage Loan Trust, a South Carolina business trust (the "REIT")
that has been qualified as a "real estate investment trust." The REIT is a
subsidiary of Carolina First Bank.
This offering will not be registered under the Securities Act of 1933 or under
the securities laws of any state, and securities will not be offered or sold
except in accordance with applicable exemptions from registration under state
and federal securities laws.
The securities being offered are Series 2000A Cumulative Fixed Rate Preferred
Shares and Series 2000B Cumulative Floating Rate Preferred Shares (the
"Preferred Shares"). The Preferred Shares pay cumulative dividends and may be
redeemed under the circumstances described in their respective terms.
In December 2000, the REIT issued to Carolina First Bank Preferred Shares having
an aggregate stated value of approximately $103 million in exchange for the
contribution of assets. Carolina First Bank is offering approximately $50
million in stated value of these Preferred Shares in this offering.
The purpose of this offering is to provide additional capital to Carolina First
Bank and proceeds for general corporate purposes of Carolina First Bank. A
portion of the proceeds will be paid in the form of dividends to The South
Financial Group, which may use the proceeds for its previously announced
repurchase program of The South Financial Group common stock and for general
corporate purposes.
The offering is being made only to "accredited investors" and "qualified
institutional buyers", as those terms are defined in federal securities laws.
This announcement is not, and should not be construed to be, an offer to sell
securities.
CONTACTS:
William S. Hummers III, Executive Vice President, (864) 255-7913
Mary M. Gentry, Treasurer, (864) 255-4919
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