US Treasury Intends Selling Warrants In SunTrust, Webster
May 25 2011 - 4:29PM
Dow Jones News
The U.S. Treasury Department says it intends to sell warrant
positions in two companies under a program designed to bail out
Wall Street.
Treasury Wednesday announced its intention to dispose of warrant
positions in Sun Trust Banks Inc. (STI) and Webster Financial Corp.
(WBS).
Treasury received the warrants in consideration for investments
made under the Troubled Asset Relief Program. Each company has
repurchased Treasury's preferred stock investment.
Over the next several weeks, Treasury intends to conduct
auctions to sell the warrant positions. The warrants will be sold
through public offerings, using a method that sets a market price
by allowing investors to submit bids above a minimum price
specified for each auction.
Treasury has 17.9 million warrants in Sun Trust and 3.28 million
in Webster.
The strike price on one set of SunTrust warrants, 11.89 million,
is $44.15, with an expiration date of Nov. 14, 2018. The strike
price on the other set, 6.01 million, is $33.70, with an expiration
date of Dec. 31, 2018.
The strike price on the Webster warrants is $18.28, with an
expiration date of Nov. 21, 2018.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com
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