Old Second Bancorp to redeem one-third of series B TARP preferreds

By Marisa Wong

Madison, Wis., Jan. 2 – Old Second Bancorp, Inc. will redeem one-third of its issued and outstanding series B fixed-rate cumulative perpetual preferred shares, according to an 8-K filing with the Securities and Exchange Commission.

The series B preferreds will be redeemed on Jan. 31. The redemption price will be the liquidation value of $1,000 per share, together with any accrued dividends accumulated to, but excluding, the redemption date.

As of Dec. 30, there were 47,331 shares of the preferreds outstanding. Redeeming one-third of the outstanding preferreds will result in the redemption of about 15,778 shares. Following the redemption, roughly 31,553 shares of the series B preferreds will remain outstanding.

The preferreds were issued in January 2009 under the U.S. Treasury’s Troubled Asset Relief Program – Capital Purchase Program and are being redeemed from third parties that purchased the securities from the Treasury in auctions held in the first quarter of 2013.

Old Second is an Aurora, Ill., bank holding company.

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