(Adds details from SEC registration statement, background)
WASHINGTON Jan 31 The U.S. Treasury said on
Monday it will auction 2.89 million stock warrants in Boston
Private Financial Holdings Inc (BPFH.O) at a minimum bid price
of $1.40 each.
The Dutch-style auction for the warrants, received in
exchange for bailout funds under the Troubled Asset Relief
Program, will start on Tuesday at 8 a.m. (1300 GMT) and end at
6:30 p.m. Bids above the minimum price may be made in 5-cent
increments, the Treasury said.
At the minimum bid price, gross proceeds before expenses
from the sale would be just over $4 million. Each bank that
took bailout money from TARP's Capital Purchase Program, begun
by the Bush administration in 2008, agreed to provide Treasury
with stock warrants at zero cost to allow taxpayers to share in
the financial sector's recovery.
The Treasury is in the midst of planning auctions for
several mid-size banking institutions.
The Boston Private warrants expire on Nov. 21, 2018, and
allow the holder to purchase one share of Boston Private's
common stock at a strike price of $8 per share, according to a
registration statement filed with the Securities and Exchange
Commission. The bank holding company's stock price closed on
Friday at $6.72 a share.
Deutsche Bank Securities is the sole book-running manager
for the auction.
(Reporting by David Lawder, Editing by Neil Stempleman)