WASHINGTON – As part of its ongoing efforts to wind
down and recover its remaining Capital Purchase Program (CPP) investments under
the Troubled Asset Relief Program (TARP), the U.S. Department of the Treasury
today announced its intention to sell several preferred stock CPP
investments. Treasury intends to conduct public auctions of its preferred
stock positions in the following 7 banks:
- Ameris Bancorp, Moultrie, GA
- Farmers Capital Bank Corp., Frankfort, KY
- First Capital Bancorp Inc., Glen Allen, VA
- First Defiance Financial Corp., Defiance, OH
- LNB Bancorp Inc., Lorain, OH
- Taylor Capital Group, Inc., Rosemont, IL
- United Bancorp Inc., Ann Arbor, MI
TARP’s bank programs have already earned a significant
profit for taxpayers. To date, Treasury has recovered $264 billion from TARP’s
bank programs through repayments, dividends, interest, and other income –
compared to the $245 billion initially invested. Treasury has remaining
outstanding CPP investments in 343 banks. Treasury intends to announce
additional CPP preferred stock auctions in the coming weeks.
Treasury expects to commence the auctions, which will be
registered public offerings, on or about June 11, 2012. These offerings
will be executed using a modified Dutch auction methodology that establishes a
market price by allowing investors to submit bids at specified increments similar
to the process Treasury used to auction other CPP investments. More
detailed guidance for the auctions will be available in prospectuses that will
be filed by the issuers of the preferred stock prior to the opening of each
auction.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“Merrill Lynch”) and Sandler O’Neill + Partners, L.P.
(“Sandler O’Neill”) have been retained as the auction agents and joint
bookrunning managers for the offerings.
If investors do not have an account with Merrill Lynch and/or
Sandler O’Neill, they may be able to participate in the auction through their
own brokers, as a network of several dozen brokerage firms will be invited to
aggregate suitable client orders and submit them to the auction agents and
bookrunners.
Registration statements relating to the
preferred stock of Farmers Capital Bank Corp., LNB Bancorp Inc., First Capital
Bancorp Inc. and United Bancorp Inc. have been filed with the Securities and
Exchange Commission but have not yet become effective. These securities may not
be sold nor may offers to buy be accepted prior to the time the registration
statement becomes effective.
Prospective investors will be able to
obtain copies of the prospectuses relating to the securities, 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.
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