Heartland files $93.95 million TARP preferreds, warrants for trading

By Susanna Moon

Chicago, Jan. 16 - Heartland Financial USA, Inc. registered the $81.7 million of fixed-rate cumulative perpetual preferred stock it sold to the U.S. Treasury under the Troubled Assets Relief Program for public trading in an S-3 shelf registration with the Securities and Exchange Commission.

Also covered under the registration is up to $12.25 million of 10-year warrants to purchase 609,687 common shares, exercisable at $20.10.

The preferreds pay cumulative dividends at 5% per year until Feb. 15, 2014 after which they step up to 9%.

The preferreds may not be redeemed prior to Feb. 15, 2012 unless the company has obtained proceeds from one or more equity offerings of $20.24 million.

Dubuque, Iowa-based Heartland said it will not receive proceeds from the reselling holders.

Issuer:	Heartland Financial USA, Inc.
Issue:	Series B preferred stock
Amount:	$81,698,000 (plus $12,254,709 warrants)
Maturity:	Perpetual
Dividend:	5%, steps up to 9% after Feb. 15, 2014
Call option:	Before Feb. 15, 2012 only with proceeds from equity offerings of $20,242,500; after Feb. 15, 2012 at par
Warrants:	For 609,687 shares
Warrant exercise price:	$20.10
Warrant expiration:	Dec. 19, 2018

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