"Economists are pessimists: they've predicted 8 of the last 3 depressions."
--Barry Asmus

The Required Disclosures

The information presented in this blog and its individual articles is provided for informational use only and should not be considered investment advice or an offer for a particular security. The contents reflect the views and opinions of the individual writer as of the date the article was written and do not necessarily represent the views of the individual writer on the current date. They also do not in any way, shape, or form represent the views of the Firm Never-To-Be-Named. Any such views are subject to change at any time based upon market or other conditions and The Great Redoubt and its individual writers disclaim any responsibility to update such views. These views should not be relied on as investment advice, and because investment decisions for any security are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any contributor to The Great Redoubt. Neither The Great Redoubt nor any individual author can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Please consult your tax or financial advisor for additional information concerning your specific situation.

Thursday, June 14, 2012

Treasury Department Announces $245 Million in Proceeds from Pricing of Public Offerings of Preferred Stock in Seven Financial Institutions

 

 


Auction Part of Treasury's Continued Efforts to Wind Down TARP's Bank Programs
 
Proceeds Deliver Additional Profit for Taxpayers on TARP's Bank Programs
 
WASHINGTON – As part of the strategy it outlined last month for winding down its remaining Troubled Asset Relief Program (TARP) bank investments, the U.S. Department of the Treasury today announced that it priced secondary public offerings of the preferred stock it holds in the following seven financial institutions at the following prices per share:
Taylor Capital Group, Inc. (Rosemont, IL), all of its 104,823 shares priced at $893.50 per share (approximately $92 million net proceeds);
Ameris Bancorp (Moultrie, GA), all of its 52,000 shares priced at $930.60 per share (approximately $48 million net proceeds);
First Defiance Financial Corp. (Defiance, OH), all of its 37,000 shares priced at $962.66 per share (approximately $35 million net proceeds);
Farmers Capital Bank Corp. (Frankfort, KY), all of its 30,000 shares priced at $739.89 per share (approximately $22 million net proceeds);
LNB Bancorp Inc. (Lorain, OH), all of its 25,223 shares priced at $869.17 per share (approximately $22 million net proceeds);
First Capital Bancorp Inc. (Glen Allen, VA), all of its 10,958 shares priced at $920.11 per share (approximately $10 million net proceeds); and
United Bancorp Inc. (Ann Arbor, MI), all of its 20,600 shares priced at $825.50 per share (approximately $17 million net proceeds).
The aggregate net proceeds to Treasury from the seven offerings are expected to be approximately $245 million, which was an overall total of 15 percent above the minimum prices set for the auctions. The prices above reflect a liquidation amount per share of $1,000 for the preferred stock of each institution.  At settlement, winning bidders will be required to pay the clearing price for the preferred stock plus accrued and unpaid dividends on the preferred stock from and including May 15, 2012.
TARP's bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from today's transaction, Treasury has now recovered $264 billion from TARP's bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested. Each additional dollar recovered from TARP's bank programs is an additional dollar of profit for taxpayers.
Today's auctions are part of the strategy that Treasury outlined last month for winding down its remaining TARP bank investments in a way that protects taxpayer interests, promotes financial stability, and preserves the strength of our nation's community banks. Treasury indicated that it intends to use a combination of repayments, restructurings, and sales to manage and recover those remaining investments. Treasury intends to announce additional CPP preferred stock auctions in the coming weeks.
"We're pleased with the results of today's auction, which  enabled these community banks to replace temporary government support with new private capital, and keeps us on track to earn a positive return for taxpayers from TARP's bank programs in excess of $20 billion," said Assistant Secretary for Financial Stability Timothy G. Massad. "TARP played a critical role in stabilizing an economy in freefall during the financial crisis, and we are continuing to make good progress in winding down the program and recovering taxpayer dollars."
The closing is expected to occur on or about June 19, 2012, subject to customary closing conditions.  The offering was priced through a modified Dutch auction.  Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and Sandler O'Neill + Partners, L.P. ("Sandler O'Neill") were the auction agents and joint bookrunning managers for the offerings.  Houlihan Lokey Capital, Inc. is serving as financial advisor to Treasury with respect to the management and disposition of its Capital Purchase Program investments. 
Each series of preferred stock is being sold pursuant to an effective shelf registration statement previously filed by the applicable issuer with the Securities and Exchange Commission (the "SEC"). Preliminary prospectus supplements related to each offering were filed with the SEC on June 11, 2012, and a final prospectus supplement related to each offering will be filed by the applicable issuer with the SEC and will be available on the SEC's website at http://www.sec.gov.
Copies of the final prospectus supplements relating to the offerings may be obtained, when available, from Merrill Lynch via email at dg.prospectus_requests@baml.com or (800) 294-1322 or from Sandler O'Neill via email at syndicate@sandleroneill.com or (866) 805-4128. 
Before you invest, you should read the prospectus and prospectus supplement in the registration statement and other documents the applicable issuer has filed with the SEC for more complete information about the issuer and the preferred stock.
 This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
 For more details on Treasury's lifetime cost estimates for TARP programs, please visit Treasury's Monthly 105(a) Report to Congress on TARP at this link.
 
# # #


This email was sent to richard.gant@fmr.com using GovDelivery, on behalf of: U.S. Department of the Treasury · 1500 Pennsylvania Ave NW · Washington, DC 20220 · 202-622-2000 Powered by GovDelivery

3 comments:

  1. You has a great blog. I'm very interesting to stopping here and leaves you a comment. Good work.

    Lets keep writing and blogging

    Nb: Dont forget to leave your comment back for us.

    ReplyDelete
  2. Amazing web log and really fascinating stuff you bought here! I positively learned plenty from reading through a number of your earlier posts in addition and set to drop a discuss this one!

    ReplyDelete
  3. Very attention-grabbing diary. lots of blogs I see recently do not extremely give something that attract others, however i am most positively fascinated by this one. simply thought that i'd post and allow you to apprehend.

    ReplyDelete