UST Corp., a Boston-based holding company with $2 billion of assets, said it is selling 2.87 million shares of common stock to European investors.
The company said the sale will raise about $22 million, at $8.125 a share, upon completion. UST shares were trading at $9.375 Friday afternoon, down 12.5 cents.
UST, which lost $24.9 million in its second quarter, said the stock was being sold to more than 60 investors. When the deal is completed, UST will have 17.23 million shares of stock outstanding.
European offerings are somewhat in vogue for medium-size banks these days. Both First Eastern Corp., the Wilkes-Barre, Pa., company that recently agreed to be acquired by PNC Bank Corp., and Midlantic Corp., the recovering New Jersey bank company, have tapped foreign markets in the past year.
Neal F. Finnegan, UST's recently appointed president and chief executive, said European deals are often quicker and and less expensive than domestic transactions because Securities and Exchange Commission requirements are avoided.
"When you look at all your choices of how you can raise capital, it's a very attractive vehicle," Mr. Finnegan said.
Turnaround Plan
Last month, Mr. Finnegan announced an aggressive plan to return UST to profitability. In addition to raising capital, the program included a drive to put its real estate-related loan problems behind it.
UST took a $42.7 million loan-loss provision in the second quarter -- up 36% from the first quarter. The company's reserve at June 30 stood at $74.9 million, or 122.6% of its nonaccruing loans.
