By Stephanie N. Rotondo
Phoenix, June 14 - The U.S. Treasury Department sold $30 million of Farmers Capital Bank Corp.'s $1,000-par fixed-rate cumulative preferred stock on Wednesday.
Each preferred share was sold at $739.89, for total proceeds of $22.19 million, according to a Treasury-issued press release published Thursday.
The Treasury had purchased the shares from the Frankfurt, Ky.-based bank under its Troubled Asset Relief Program.
Dividends on the preferreds are initially payable at 5%. The rate will increase to 9% on May 15, 2014, unless redeemed beforehand by Farmers Capital.
Farmers did not receive any of the proceeds.
The auction was part of the Treasury's attempt to windown its TARP investments. The modified Dutch auction began Monday and ended Wednesday, with a total of seven financial institutions participating.
The Treasury raised a total of $245 million from the public offering.
Settlement is expected on June 19.
Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP acted as auction agents and joint bookrunning managers. Houlihan Lokey Capital, Inc. was the Treasury's financial advisor.
| Issuer: | Farmers Capital Bank Corp.
|
| Securities: | Fixed-rate cumulative preferred stock
|
| Amount: | $30 million, or 30,000 shares
|
| Dividend: | Fixed at 5% until May 15, 2014, then reset at 9%
|
| Price: | $739.89 per share
|
| Liquidation preference: | $1,000 per share
|
| Bookrunners: | Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP
|
| Pricing: | June 13
|
| Settlement: | June 19
|
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