Treasury launches Dutch auction of five banks' TARP preferreds

By Stephanie N. Rotondo

Phoenix, Aug. 21 - The Department of the Treasury has commenced a modified Dutch auction of $1,000-par fixed-rate cumulative preferred stock issued by five banks under the Troubled Asset Relief Program.

The banks are BNC Bancorp of High Point. N.C.; First Community Corp. of Lexington, S.C.; First National Corp. of Strasburg, Va.; Guaranty Federal Bancshares Inc. of Springfield, Mo.; and Mackinac Financial Corp. of Manistique, Mich.

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

The bidding deadline is 6:30 p.m. ET on Thursday.

As previously reported, all banks have registered their respective securities. The Treasury will receive all proceeds from the sale.

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