National Penn Bancshares Inc. said today that it has completed the sale of $150 million of senior preferred stock to the U.S. Treasury Department under the TARP Capital Purchase Program.
"National Penn is well-capitalized by all regulatory standards and has a long history of financial strength," said Glenn E. Moyer, president and CEO of Boyertown-based National Penn Bancshares. "However, given the challenges facing the economy, we believe our voluntary participation in this program will provide additional resources for us to help stimulate economic recovery in our region by continuing to expand our relationships with consumers and business customers."
In the transaction, the U.S. Treasury purchased 150,000 shares of newly issued, non-voting National Penn senior preferred stock with an aggregate liquidation preference of $150 million and an initial annual dividend of 5 percent.
The government also received warrants to buy 1,470,588 shares of National Penn common stock at an exercise price of $15.30 a share.