June 3, 2010 / 12:48 PM / 8 years ago

UPDATE 1-US to net $2.97 mln on First Financial warrants

(adds details, background)

WASHINGTON, June 3 (Reuters) - The U.S. Treasury Department said on Thursday that it will take in net proceeds of about $2.97 million from the sale of warrants in First Financial Bancorp (FFBC.O) that were priced at $6.70 each.

The sale of 465,117 warrants is expected to close on or about June 8, Treasury said in a statement, providing U.S. taxpayers with an additional return on the government’s preferred stock investment in the bank, which was previously repaid.

    First Financial Bancorp received $80 million in financial rescue funds from the Troubled Asset relief Program in December, 2008, during the financial crisis and repaid the money on February 24 this year.

    The government received the warrants for First Financial stock as a condition of giving it bailout funds. Money from the warrant auctions now goes back into Treasury’s coffers.

    The warrant offering represents Treasury’s sale of its remaining investment in First Financial Bancorp.

    A shelf registration statement the company filed with the Securities and Exchange Commission shows the warrants to buy First Financial stock at $6.70 each expire on Dec. 23, 2018.

    Reporting by Glenn Somerville; Editing by Chizu Nomiyama

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