Executives at Pinnacle Financial Partners have struck a deal with U.S. Treasury officials to redeem the regulator’s warrant to buy almost 270,000 shares of the Nashville-based bank holding company.
The government had obtained the warrant in late 2008 as part of its Troubled Assets Relief Program investment in Pinnacle, which last month redeemed the last of that stake for about $72 million. Pinnacle’s deal with Treasury calls for the company to pay $755,100 to redeem the warrants. In a filing with the Securities and Exchange Commission, Pinnacle says the agreement should be finalized in the next few weeks.
Treasury could have bought the shares at $26.64, well above the almost $20 at which Pinnacle is trading today. Pinnacle’s buyout eliminates the potential that existing shareholders could be diluted as a result of the company’s TARP participation, something President and CEO Terry Turner has repeatedly said was vital to his team’s plans.
Shares of Pinnacle (Ticker: PNFP) have risen about 20 percent so far this year. The company will report its second-quarter earnings July 18.