US Treasury to net $936 million from JPMorgan warrants

By Reuters Staff
December 11, 2009

WASHINGTON, Dec 11 (Reuters) – The U.S. Treasury Department on Friday said it priced warrants in JPMorgan Chase & Co at $10.75 per warrant in a deal that will bring U.S. taxpayers net proceeds of $936.06 million.

The 88.4 million warrants to purchase common stock in JPMorgan were priced in a modified Dutch auction. The sale marks the disposal of the government’s remaining investment in the banking giant, which the Treasury received last year in exchange for $25 billion in bailout money.

The closing of the warrant sale is expected to occur on or about Dec. 16. Deutsche Bank Securities was the sole bookrunner, with Ramirez & Co., The Williams Capital Group and Utendahl Capital Group co-managing the offering.

The sale is the latest in a series of Treasury auctions of warrants received from banks that accessed the $700 billion Troubled Asset Relief Program.

Last week, Treasury priced warrants in Capital One Financial Corp at $11.75 each, bringing in net proceeds of $146.5 million. It also has set plans to auction warrants in TCF Financial Corp.

Bank of America, which this week paid back $45 billion in bailout funds, has not yet determined whether it will try to buy back Treasury-held warrants or let the Treasury auction them off.

(Reporting by David Lawder; Editing by Andrea Ricci) ((david.lawder@thomsonreuters.com; +1 202 898 8395; Reuters Messaging: david.lawder.reuters.com@reuters.net))

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