Minneapolis-based U.S. Bancorp announced it has completed the repurchase of a warrant held by the U.S. Treasury Department.
The 10-year warrant was issued on Nov. 14, 2008, through the company’s participation in the U.S. Treasury’s Capital Purchase Program, which is part of the Troubled Asset Relief Program (TARP). The warrants entitled the Treasury to purchase 32.7 million shares of U.S. Bancorp’s common stock at an exercise price of $30.29 per share. The company paid $139 million to the Treasury to repurchase the warrant.
"We are very pleased to have completed the repurchase of the warrant, effectively concluding U.S. Bancorp’s participation in the Capital Purchase Program," said Richard Davis, chairman, president and chief executive officer of U.S. Bancorp. "We entered into the Capital Purchase Program to support the efforts of the U.S. Treasury Department to stimulate the economy and increase the flow of credit to both consumers and businesses across the country. We look forward to continuing those efforts as we support our customers and communities from a position of strength and independence."
U.S. Bancorp, with $264 billion in assets, is the parent company of U.S. Bank, the sixth-largest commercial bank in the United States.
