By Susanna Moon
Chicago, April 17 - Firstbank Corp. registered $33 million of series A fixed-rate cumulative perpetual preferred stock sold to the U.S. Treasury for public trading in an S-1 filing with the Securities and Exchange Commission.
The Treasury bought the preferreds under the Troubled Asset Relief Program's Capital Purchase Program.
The 33,000 preferreds have a liquidation preference of $1,000 each.
The initial dividend rate is 5% per year. The rate will step up to 9% per year on Feb. 15, 2014. Dividends are payable quarterly.
The registration also covers warrants for 578,947 shares exercisable at $8.55.
The company's stock closed at $9.18 (Nasdaq: FBMI) on Tuesday.
The notes are callable at par plus accrued dividends up to but excluding the redemption date, subject to approval by the appropriate federal banking agency, the filing noted.
The bank said it assumes that any sales of the preferreds by the Treasury will be made through a modified Dutch auction. The public offering price and the allocation of the preferreds would be determined through the auction process conducted by a bookrunner.
The price at which the preferreds would be sold to the public would be the clearing price set by the auction process plus accrued dividends. The clearing price would be set based on the number of bids that the Treasury decides to accept. The clearing price would be equal to the highest price in the auction for which the quantity of all bids at or above such price equals the number of preferreds that the Treasury has elected to sell.
The bank holding company is based in Alma, Mich.
| Issuer: | Firstbank Corp.
|
| Issue: | Fixed-rate cumulative perpetual preferred stock, series A
|
| Amount: | $33 million
|
| Maturity: | Perpetual
|
| Dividends: | 5% initially, stepping up to 9% on Feb. 15, 2014; payable quarterly
|
| Liquidation amount: | $1,000
|
| Call option: | At par subject to federal approval
|
| Warrants: | For 578,947 common shares
|
| Warrant exercise price: | $8.55
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
