This excerpt taken from the FCF 10-Q filed Oct 31, 2008.
Note 10 Subsequent Events
On October 14, 2008, the United States Treasury Department announced a voluntary Capital Purchase Program whereby the Treasury will purchase senior preferred shares from qualifying United States controlled banks, savings associations, and certain bank and savings and loan holding companies. Each participating institution may sell an amount of senior preferred shares ranging from 1.0% to 3.0% of its total risk-weighted assets. The preferred shares are generally nonvoting, pay a cumulative dividend rate of 5.0% per year for the first five years and will reset to a rate of 9.0% per year after year five, and are callable at par after three years or sooner with the
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
ITEM 1. FINANCIAL STATEMENTS (Unaudited) (Continued)
September 30, 2008
Note 10 Subsequent Events (Continued)
proceeds of a qualifying offering of Tier 1 common or preferred stock. The Treasury will receive warrants from each participating institution to common stock with an aggregate market price equal to 15.0% of the senior preferred investment and an exercise price equal to the market price of the institutions common stock at the time of issuance. Participating institutions must agree to certain limitations on executive compensation, share repurchases and dividend payments. The deadline for submitting an application to participate in the Capital Purchase Program is November 14, 2008. We are analyzing the benefits and costs of the Capital Purchase Program and have not yet determined whether or to what extent we will participate.
On October 30, 2008, First Commonwealth Financial Corporation entered into an underwriting agreement with Keefe, Bruyette & Woods, Inc., as representative for the underwriters, for gross proceeds of $100 million, exclusive of any underwriter over-allotment option. The net proceeds of the offering after deducting underwriting discounts and commissions and estimated offering expenses are expected to be approximately $94.6 million. The underwriters have been granted an option to purchase up to an additional 15% of the shares sold to cover over-allotments, if any. First Commonwealth expects to close the transaction, subject to customary conditions, on or about November 5, 2008. First Commonwealth expects to use the net proceeds of the offering to support the continued growth and capital needs of First Commonwealth Bank and for general corporate purposes.