Treasury to auction TARP capital purchase stock, debt

140px-US-DeptOfTheTreasury-Seal.svgThe U.S. Treasury said on Monday plans to auction off its Troubled Asset Relief Program’s Capital Purchase Program preferred stock and debt in six financial institutions across the U.S. from June 10 to June 13.

Offerings in Kansas-based Farmers & Merchants Financial Corp., Colorado-based First Western Financial, New York-based Intervest Bancshares Corp., Pathway Bancorp in Nebraska, Security State Bank Holding Co. in North Dakota and Alabama-based Worthington Financial Holdings will be priced through a modified Dutch auction.

During the auction, CPP securities bidders will be able to place bids on the offerings at any price per share, or per $1,000 aggregrate principal, and  potential investors are permitted to bid on individual or multiple securities.

The CPP securities are not and will not be registered under the Securities Act of 1933 and may not be offered or sold in the U.S. for or to the benefit of an unregistered U.S. person. Offerings will be available only to “qualified institutional buyers” as defined by the law, some “accredited investors” who have assets greater than $25 million and certain directors and executives of the CPP securities issuers.

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