International Bancshares files $248.4 million TARP preferreds, warrants for trading

By Jennifer Chiou

New York, Jan. 22 - International Bancshares Corp. registered the $216 million of fixed-rate cumulative perpetual preferred stock it sold to the U.S. Treasury for public trading in an S-3 shelf registration with the Securities and Exchange Commission.

Also covered under the registration is up to $32.4 million of 10-year warrants to purchase 1,326,238 common shares, exercisable at $24.43.

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 $54 million.

Laredo, Texas-based International Bancshares said it will not receive proceeds from the reselling holders.

Issuer:	International Bancshares Corp.
Issue:	Series A preferred stock
Amount:	$216 million (plus $32,399,994.34 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 $54 million; after Feb. 15, 2012 at par
Warrants:	For 1,326,238 shares
Warrant exercise price:	$24.43
Warrant expiration:	Dec. 23, 2018

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