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Auction Part of Treasury’s Continued Efforts to Wind Down TARP’s Bank Programs
Proceeds Deliver Additional Profit for Taxpayers on TARP’s Bank Programs
WASHINGTON – As part of the strategy it outlined for winding down its remaining Troubled Asset Relief Program (TARP) bank investments, the U.S. Department of the Treasury announced that it priced the auction for all 20,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “CPP Securities”), it held in First Financial Service Corporation (Elizabethtown, KY) at $542.11 per share. The aggregate gross proceeds to Treasury from the auction are expected to be approximately $10.8 million.
The auction of Treasury’s CPP Securities in First Financial Service Corporation was launched on Monday, April 15, 2013, along with auctions for the preferred stock and subordinated debt investments Treasury held in seven other issuers. Treasury and its auction agents extended the auction of its CPP Securities in First Financial Service Corporation due to technical issues.
Treasury announced the successful pricing of those other auctions on Friday, April 19, 2013.
The closing for the auction is expected to occur on or about April 29, 2013, subject to customary closing conditions. The offering was priced through a modified Dutch auction.
The CPP Securities sold in the auction have not been and will not be registered under the Securities Act of 1933, as amended (the Act), and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Act and applicable state securities law. The CPP Securities were offered only to (1) domestic “qualified institutional buyers” as defined in Rule 144A under the Act, (2) certain domestic 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 respective issuers of the CPP Securities. 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.
For more details on Treasury’s lifetime cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report to Congress on TARP at this link: http://www.treasury.gov/initiatives/financial-stability/reports/Pages/Monthly-Report-to-Congress.aspx.
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