First National Bancshares, Inc.
First National Bancshares, 7.25% Series A Noncum Conv Perp Preferred Stock
$25 Face Value
Ticker Symbol: FNSCP CUSIP: 32111B203 Exchange: OTCBB
215 North Pine Street
Spartanburg, SC 29302
Phone: (864) 948-9001
SECURITY DESCRIPTION: First National Bancshares, 7.25% Series A Noncumulative Convertible Perpetual Preferred Stock, liquidaton preference $25 per share, redeemable at the issuer's option on or after 3 years from the date of issue at $26.50 per share which declines to $25 five years after the date of issue plus declared and unpaid dividends, and with no stated maturity. Distributions of 7.25% ($1.8125) per annum are paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date which will be the 15th day prior to the payment date (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Dividends paid by the preferred are eligible for the 15% tax rate on dividends under normal holding restrictions and are also eligible for the dividends received deduction for corporate holders (see page 103 of the prospectus for further information). The preferred shares are convertible any time at the holder's option into 1.42857 common shares of First National Bancshares (Nasdaq: FNSC), an initial conversion price of $17.50 per common share. At any time, if the price of the common stock exceeds 140% of the conversion price for 20 consecutive trading days, the company may, at their option, force the preferred shares to be converted into common shares at the then prevailing conversion price. In regard to the payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock and the conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.