Treasury to auction $14.6 million First National series A, B preferreds

By Stephanie N. Rotondo

Phoenix, Aug. 17 - The Department of the Treasury will auction $14.6 million of series A and B fixed-rate cumulative perpetual preferred stock issued by First National Corp., the agency said in a press release Friday.

The Strasberg, Va.-based bank has registered 13,900 series A preferreds and 695 series B preferreds.

Dividends on the $1,000-par preferreds are payable on the 15th of February, May, August and November. The dividend is fixed at 5% thought May 14, 2014, at which time it will convert to 9%, presuming the preferred shares are not redeemed by that point.

The price per preferred will be set via a modified Dutch auction that will begin Tuesday.

Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP are the joint bookrunning managers and auction agents.

First National will not receive any proceeds from the sale.

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