By Stephanie N. Rotondo
Phoenix, June 28 - The U.S. Department of the Treasury sold $32.54 million of series A fixed-rate cumulative perpetual preferred stock issued by Pulaski Financial Corp. at auction, according to a press release published Thursday.
The auction began Monday and ended Wednesday.
The winning bid for the 32,538 preferred shares was $888 per share, compared to the original minimum bid of $739.25 per share.
Total proceeds from the modified Dutch auction were $28.9 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 St. Louis-based company will not receive any proceeds from the auction.
| Issuer: | Pulaski Financial Corp.
|
| Securities: | Series A fixed-rate cumulative perpetual preferred stock
|
| Amount: | $25.05 million, or 25,054 shares
|
| Proceeds: | $28.9 million
|
| Dividend: | 5% until Feb. 15, 2014, then reset to 9%
|
| Price: | $888 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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