Banking & Finance

Bank issues $70M public offering

June 20, 2014
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A bank with a large regional presence has commenced a $70-million public offering of its common stock.

Chemical Financial Corporation (Nasdaq: CHFC) in Midland said Wednesday that it has opened an underwritten public offering of 2.5 million shares of common stock at $28 per share. The offering is anticipated to close on June 24.

The bank is also offering a 30-day overallotment option for underwriters to purchase up to an additional 375,000 shares of common stock. If demand for the common stock is high and shares are traded above the offering price, the overallotment option gives Chemical Financial the opportunity to raise additional funds.

Merger funds

Chemical Financial said it will use the capital raised from the public offering for “general corporate” funding, including a portion of the merger with Northwestern Bancorp, organic loan growth and long-term strategic opportunities.

The bank will also use the funds to restructure Chemical Financial debt and equity, if the corporation operates as a separate entity following the pending merger with Northwestern Bank in Traverse City.

Offering managers

The book-running management for the public offering is being conducted by the investment banking firm Keefe, Bruyette & Woods in New York.

The co-manager for the offering is investment banking firm Sandler O’Neill and Partners.

The sale of the common stock is considered effective under the corporation’s shelf registration statement, which it filed with the Securities and Exchange Commission on June 12.

Chemical Bank

Chemical Bank, founded in 1917, operates more than 150 banking locations in 38 counties across Michigan.

The bank had a total of $6.34 billion in assets as of March 31. 

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