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Thursday, 19 June 2014 10:07

Chemical hopes to raise $70M in public stock offering

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Chemical Financial Corp. has initiated a public stock offering to raise $70 million, part of which could go to help finance the $120 million acquisition of Northwestern Bancorp Inc. in Traverse City.

The public offering will include 2.5 million shares priced at $28 per share.

The Midland-based Chemical Financial (Nasdaq: CHFC) said in a filing with federal securities regulators that proceeds from the stock offering will go to “general corporate purposes” that may include funding a portion of the merger and recapitalizing Northwestern if it remains a separate bank for a period of time after the deal closes.

Proceeds would also go to “funding organic loan growth and long-term strategic opportunities which may arise in the future,” according to a prospectus filed with the U.S. Securities and Exchange Commission.

St. Louis-based Keefe, Bruyette & Woods, a Stifel company, is the sole book-running manager for the offering. Sandler O'Neill + Partners in New York City serves as co-manager.

The stock offering comes a year after Chemical Financial filed a shelf registration for up to $100 million in shares that it could offer as needed. In March, the bank announced the planned acquisition of Northwestern Bancorp in a cash deal that would extend Chemical’s footprint across the Lower Peninsula. Shareholders of Northwestern Bancorp approved the deal in May.

Pending regulatory approval, the deal should close in the third quarter.

Read 1871 times Last modified on Thursday, 19 June 2014 15:08

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