First Bancorp (FBNC) Completes Sale of $65M of Preferred Stock Under U.S. Treasury's Capital Purchase Program
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First Bancorp (Nasdaq: FBNC) reports that it has completed the sale of $65 million of preferred stock to the U.S. Treasury Department under the Treasury's Capital Purchase Program (CPP). The program is designed to attract broad participation by healthy banking institutions to help stabilize the financial system and increase lending for the benefit of the U.S. economy.
The preferred stock issued to the Treasury will pay a dividend of 5% for the first five years and 9% thereafter. We generally are permitted to redeem the preferred shares at par plus unpaid dividends, except that during the first three years we may only redeem the shares with the proceeds from the sale of qualifying "tier 1" preferred stock or common stock. As part of the program, the Treasury also received warrants that give the Treasury the option for the next ten years to purchase a total of 616,308 shares of First Bancorp common stock at an exercise price of $15.82. Please see First Bancorp's Form 8-K that will be filed with the Securities & Exchange Commission for a more complete description of the terms of the program.
The preferred stock issued to the Treasury will pay a dividend of 5% for the first five years and 9% thereafter. We generally are permitted to redeem the preferred shares at par plus unpaid dividends, except that during the first three years we may only redeem the shares with the proceeds from the sale of qualifying "tier 1" preferred stock or common stock. As part of the program, the Treasury also received warrants that give the Treasury the option for the next ten years to purchase a total of 616,308 shares of First Bancorp common stock at an exercise price of $15.82. Please see First Bancorp's Form 8-K that will be filed with the Securities & Exchange Commission for a more complete description of the terms of the program.
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