The Treasury Department is selling 3.2 million
warrants to buy shares in TCF Financial Corp. as part of its efforts to
unwind the investments it made through the Troubled Asset Relief
Program.
It is selling the warrants today via a modified
Dutch auction, with a minimum price of $1.50 per warrant.
The Treasury received the warrants when it
provided $361 million in aid to TCF in November 2008. TCF, based in Wayzata,
Minn., repaid that money in April and redeemed preferred stock it also had issued
the government.
The warrants being sold give the holder the
right to buy one share of TCF's common stock at $16.93 a share, until November 14, 2018. Its shares closed Monday at $13.37, compared to a 52-week low of
$8.74 recorded in March.
Based on the minimum bid price, the sale of the
TCF warrants will generate at least $4.8 million.
The Treasury raised more than $1.1 billion this
month by selling its warrants in two bigger TARP recipients, JPMorgan Chase
& Co. and Capital One Financial Corp.
0 Comments
Leave a comment