By Stephanie N. Rotondo
Phoenix, June 14 - The U.S. Treasury Department auctioned $10.96 million of First Capital Bancorp Inc.'s $1,000-par series A fixed-rate cumulative preferred stock on Wednesday.
Each preferred share was sold at $920.11, for total proceeds of $10.96 million, according to a Treasury-issued press release published on Thursday.
The Treasury had purchased the shares from the Glen Allen, Va.-based financial holding company under its Troubled Asset Relief Program.
Dividends on the preferreds are initially payable at 5%. The rate will increase to 9% on May 15, 2014, unless redeemed beforehand by First Capital.
The company did not receive any of the proceeds.
The auction was part of the Treasury's attempt to windown its TARP investments. The modified Dutch auction began Monday and ended Wednesday, with a total of seven financial institutions participating.
The Treasury raised a total of $245 million from the public offering.
Settlement is expected on June 19.
Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP acted as auction agents and joint bookrunning managers. Houlihan Lokey Capital, Inc. was the Treasury's financial advisor.
| Issuer: | First Capital Bancorp Inc.
|
| Securities: | Series A fixed-rate cumulative preferred stock
|
| Amount: | $10.96 million, or 10,958 shares
|
| Dividend: | Fixed at 5% until May 15, 2014, then reset at 9%
|
| Price: | $920.11 per share
|
| Liquidation preference: | $1,000 per share
|
| Bookrunners: | Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP
|
| Pricing: | June 13
|
| Settlement: | June 19
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