By Stephanie N. Rotondo
Phoenix, Aug. 24 - The U.S. Department of the Treasury sold $14.6 million series A and B fixed-rate cumulative perpetual preferreds originally issued by First National Corp., the agency said in a press release on Friday.
The Strasberg, Va.-based bank previously registered 13,900 shares of the series A $1,000-par preferreds and 695 of the series B $1,000-par preferreds.
The series A preferreds were priced at $882.50, and the series Bs were priced at $921.50. Total proceeds came to $12.7 million.
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 a 9% coupon, presuming the preferred shares are not redeemed by that point.
Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP are the joint bookrunning managers and auction agents.
Houlihan Lokey Capital Inc. acted as financial advisor to the Treasury.
First National will not receive any proceeds from the sale.
| Issuer: | First National Corp.
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| Securities: | Fixed-rate cumulative preferred stock
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| Series A
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| Amount: | $13.9 million, or 13,900 million shares
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| Price: | $882.50
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| Series B
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| Amount: | $695,000, or 695 shares
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| Price: | $921.50
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| Maturity: | Perpetual
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| Bookrunners: | Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP
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| Dividend: | Fixed at 5% through May 14, 2014, then reset to 9%
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| Par: | $1,000 per share
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| Pricing date: | Aug. 23
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| Settlement date: | Aug. 29
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