Treasury to auction $11 million Mackinac Financial preferreds

By Stephanie N. Rotondo

Phoenix, Aug. 17 - The Department of the Treasury is auctioning $11 million of series A fixed-rate cumulative perpetual preferred stock issued by Mackinac Financial Corp., the agency said in a press release Friday.

The Manistique, Mich.-based bank registered 11,000 of the preferreds and warrants for 379,310 common shares. The securities were issued to the Treasury under the Troubled Asset Relief Program.

The strike price on the warrants is $4.35 per share.

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.

Mackinac will not receive any proceeds from the sale.

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