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5/12/2020

Treasury Announces Intent to Sell Warrant Positions in Public Dutch Auctions

U.S. DEPARTMENT OF THE TREASURY
Press Center

Treasury Announces Intent to Sell Warrant Positions in Public Dutch Auctions
2/18/2010

TG-553
The US Department of the Treasury today announced its intention to dispose of several warrant positions received in consideration for investments made under the Capital Purchase
Program (CPP) and Targeted Investment Program (TIP). Over the next month, Treasury intends to conduct auctions to sell its warrant positions in Bank of America Corporation,
Washington Federal, Inc., Texas Capital Bancshares, Inc., and Signature Bank.

Each of these banks has fully repurchased Treasury´s preferred stock investment. The warrant sales anticipated over the next month, if
consummated in full, would represent Treasury´s disposition of its remaining holdings in these banks. The proceeds of these sales will
provide an additional return to the American taxpayer from Treasury´s investments in these banks beyond the dividend payments it
received on the related preferred stock.
Treasury intends to sell the warrants through public offerings. These offerings will be executed using a modified Dutch auction
methodology that establishes a market price by allowing investors to submit bids at specified increments above a minimum price specified
for each auction. More detailed guidance for the auctions will be available in prospectuses that will be filed or offering circulars that will be
made available by the warrant issuers prior to the opening of each auction. Treasury expects to conduct similar auctions in the future for
other warrant positions it holds in banks that have repaid CPP.
Deutsche Bank Securities Inc. (Deutsche Bank) has been retained as the auction agent and sole bookrunning manager for these offerings.
In this role, Deutsche Bank will accept bids and identify a clearing price for each auction. If investors do not have an account with
Deutsche Bank, they may be able to participate in the auction through their own brokers, as a network of several dozen brokerage firms
will be invited to aggregate suitable client orders and submit them to Deutsche Bank. The warrants are complex securities that are not
suitable for all investors.
Prospective investors will be able to obtain copies of the prospectuses or offering circulars, as applicable, relating to these securities,
when available, from Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City,
New Jersey 07311-3988, telephone: 1-800-503-4611.
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https://www.treasury.gov/press-center/press-releases/Pages/tg553.aspx

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5/12/2020

Treasury Announces Intent to Sell Warrant Positions in Public Dutch Auctions

https://www.treasury.gov/press-center/press-releases/Pages/tg553.aspx

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