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U.S. Department of the Treasury

07/23/2012 | Press release

Treasury Department Announces Auctions for Preferred Stock and Subordinated Debt Postions of Twelve Financial Institutions

distributed by noodls on 07/23/2012 10:10

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 Treasury Department Announces Auctions for Preferred Stock and Subordinated Debt Postions of Twelve Financial Institutions


7/23/2012

Page Content

WASHINGTON-- The U.S. Department of the Treasury announced today that it is commencing auctions for all of its Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP) preferred stock and subordinated debt positions (the "CPP Securities") in the following twelve institutions:

  • CBS Banc-Corp., Russellville, Alabama
  • Commonwealth Bancshares, Inc., Louisville, Kentucky
  • Diamond Bancorp., Inc., Washington, Missouri
  • Exchange Bank, Santa Rosa, California
  • Fidelity Financial Corporation, Wichita, Kansas
  • First Community Financial, Joliet, Illinois
  • First Western Financial, Inc., Denver, Colorado
  • Market Street Bancshares, Inc., Mount Vernon, Illinois
  • Marquette National Corporation, Chicago, Illinois
  • Premier Financial Bancorp., Inc., Huntington, West Virginia
  • Park Bancorporation, Madison, Wisconsin
  • Trinity Capital Corporation, Los Alamos, New Mexico

This is the first auction Treasury is conducting that includes CPP Securities of institutions with no publicly traded common equity.

The offerings are expected to price through a modified Dutch auction. The auctions will commence at 9:00 a.m., New York City time, on July 23, 2012, and will close at 6:30 p.m., New York City time, on July 26, 2012 (the "submission deadline"). During the auction period, potential bidders for the CPP Securities will be able to place bids on the offered CPP Securities (in increments of whole shares or $1,000 principal amount, as applicable) at any price per share or per $1,000 principal amount, as applicable, and in increments of $0.01 at or above the minimum prices set forth in the applicable bidder letter agreement provided to the potential bidders.

At settlement, winning bidders will be required to pay the clearing price for the CPP Securities. Investors may bid on individual or multiple CPP Securities.

The auction procedures are described in full in the applicable bidder letter agreement.TheCPP Securities will be offered only to (1) "qualified institutional buyers" as defined in Rule 144A under the Act, (2) certain institutional "accredited investors" as defined in Rule 501(a) under the Act that have total assets of not less than $25,000,000 and (3) in certain cases, certain directors and executive officers of the issuers of the CPP Securities. The CPP Securities that will be sold in the auction may not be offered or sold absent registration under, or an applicable exemption from, applicable state securities law. This press release does not constitute an offer to sell or the solicitation of an offer to buy the CPP Securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.

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