By Angela McDaniels
Tacoma, Wash., Sept. 30 - First Bancorp registered $63.5 million of series B senior noncumulative perpetual preferred stock for resale in an S-3 filing with the Securities and Exchange Commission.
The bank sold the preferreds to the Treasury Department on Sept. 1 under its Small Business Lending Fund program.
The Treasury, or any other holder to whom the Treasury has transferred its registration rights, may offer the preferreds from time to time at varying prices.
The 63,500 preferreds have a liquidation preference of $1,000 each.
Dividends are payable quarterly when declared by the board of directors. The dividend rate is 5% for the first quarter, which ends on Dec. 31. For the second through 10th quarters, the dividend rate can fluctuate between 1% and 5% based on the bank's amount of qualified small business lending.
Beginning in the 11th quarter, the dividend rate will be fixed at 7% if the bank's qualified small business lending level has not increased from the baseline. Otherwise, it will be fixed at between 1% and 5% based on how much the lending amount increases from the baseline. The baseline is $493.4 million, which is the average of the bank's quarter-end qualified small business lending amount for the four quarters ended June 30, 2010.
If at the beginning of the 10th full quarter, the company's qualified small business lending level has not increased from the baseline, then it will be required to pay Treasury a lending incentive fee equal to 0.5% of the outstanding liquidation amount of the preferreds. This fee will be payable on each dividend payment date from April 1, 2014 through April 1, 2016.
Beginning four and a half years after issuance, the dividend rate will be fixed at 9%.
Subject to the approval of the Federal Reserve Board, the preferreds are callable at par plus accrued dividends at any time.
First Bancorp is a bank holding company based in Troy, N.C.
| Issuer: | First Bancorp
|
| Issue: | Series B senior noncumulative perpetual preferred stock
|
| Amount: | $63.5 million
|
| Preferreds: | 63,500
|
| Liquidation amount: | $1,000
|
| Dividends: | For first 10 quarters, 1% to 5% depending on bank's amount of qualified small business lending; beginning in 11th quarter, 7% if lending amount remains flat or decreases, otherwise 1% to 5%; after four and a half years, 9%; payable quarterly
|
| Call option: | At par plus accrued dividends subject to Fed approval
|
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