MidSouth Bancorp has announced that it sold to the US Department of the Treasury shares of the company’s preferred stock for $20 million and a 10-year warrant to purchase up to 208,768 shares of the company’s common stock at an exercise price of $14.37 per share, for an aggregate purchase price of
$3 million.
The preferred stock and warrant were issued in association with the capital purchase programme under the Treasury Department’s troubled asset relief programme.
MidSouth Bancorp, through its wholly owned subsidiary MidSouth Bank, offers banking services to commercial and retail customers in south Louisiana and southeast Texas.
The U.S. Treasury recently created the capital purchase programme (CPP) which is part of the troubled assets relief programme to encourage qualifying U.S. financial institutions to increase the flow of financing to businesses and consumers, thereby restoring liquidity and stability to the U.S. financial system. Companies participating in the programme must adopt the Treasury Department’s standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this programme. These standards generally apply to the chief executive officer, chief financial officer and the next three most highly compensated executive officers. The approval is subject to certain conditions and the execution of definitive agreements.
