The Treasury Department estimates that it made more than $13.1 million from the sale of warrants in Cathay General Bancorp (CATY).
The agency priced more than 1.8 million warrants at $7.20 each, or 70 cents above the minimum bid, in an auction that took place Tuesday. Each warrant represents the right to buy a share of the Los Angeles company's stock at $20.96, 5% lower than its Tuesday closing price of $26.40.
Treasury had obtained the warrants as a result of Cathay General's participation in the Troubled Asset Relief Program. The $10.6 billion-asset Cathay General exited Tarp with a final payment in September. It received $258 million through the program in December 2008.
The Treasury expects the sale of the warrants to close on Monday. Deutsche Bank Securities was the book runner for the auction.
Cathay General shares were trading at $26.29 late Wednesday morning.