By Stephanie N. Rotondo
Phoenix, June 28 - The U.S. Department of the Treasury sold $33 million of series A fixed-rate cumulative perpetual preferred stock issued by Firstbank Corp., according to a press release published Thursday.
The auction began Monday and ended Wednesday.
The winning bid for the 33,000 preferred shares was $941.01 per share, versus the original minimum bid of $842 per share.
Total proceeds from the modified Dutch auction were $31.05 million.
The liquidation preference is $1,000 per preferred.
The dividend rate is initially 5%. It will increase to 9% on Feb. 15, 2014.
The preferreds are callable at $1,000 each at any time subject to federal approval.
The auction is part of the Treasury's strategy to recoup funds given out under the Troubled Asset Relief Program. In this auction, which included seven participating banks, the agency raised $204 million, 11% more than the original minimum prices set.
Settlement is expected July 3.
Bank of America Merrill Lynch and Sandler O'Neill + Partners LP were the auction agents and joint bookrunners. The co-managers were Great Pacific Fixed Income Securities, Inc., Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
Houlihan Lokey Inc. served as adviser to the Treasury.
The Alma, Mich.-based bank will not receive any proceeds from the sale.
| Issuer: | Firstbank Corp.
|
| Securities: | Series A fixed-rate cumulative perpetual preferred stock
|
| Amount: | $33 million, or 33,000 shares
|
| Proceeds: | $31.05 million
|
| Dividend: | 5% until Feb. 15, 2014, then reset to 9%
|
| Price: | $941.01 per share
|
| Liquidation preference: | $1,000 per share
|
| Redemptions: | At any time, subject to federal approval
|
| Bookrunners: | Bank of America Merrill Lynch, Sandler O'Neill + Partners LP
|
| Co-managers: | Great Pacific Fixed Income Securities, Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Co., Inc.
|
| Pricing date: | June 27
|
| Settlement date: | July 3
|
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