By Stephanie N. Rotondo
Phoenix, Aug. 24 - The U.S. Department of the Treasury priced at auction a sale of $31.26 million series A fixed-rate cumulative perpetual preferreds originally issued by BNC Bancorp, the agency said in a press release on Friday.
The High Point, N.C.-based financial holding company had previously registered the shares - sold to the government under the Troubled Asset Relief Program - with the Securities and Exchange Commission.
The preferred shares were priced at $921.23 per share, generating total proceeds of $28.4 million.
Dividends on the $1,000-par preferreds are payable on the 15th of February, May, August and November. The dividend is fixed at 5% thought Feb. 14, 2014, at which time it will convert to a 9% coupon, presuming the preferred shares are not redeemed by that point.
Settlement is expected on Aug. 29.
Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP are the joint bookrunning managers and auction agents.
Houlihan Lokey Capital Inc. acted as the Treasury's financial advisor.
BNC will not receive any proceeds from the sale.
| Issuer: | BNC Bancorp
|
| Securities: | Series A fixed-rate cumulative preferred stock
|
| Amount: | $31.26 million, or 31,260 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch and Sandler O'Neill + Partners, LP
|
| Dividend: | Fixed at 5% through Feb. 14, 2014, then reset to 9%
|
| Price: | $921.23 per share
|
| Par: | $1,000 per share
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 29
|
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