Unity in N.J. Looks to Raise $6M in Rights Offering

Unity Bancorp (UNTY) in Clinton, N.J., plans to raise up to $6 million through a rights offering.

The $921 million-asset company said in a regulatory filing Tuesday that it will distribute about 760,000 common stock purchase rights to shareholders. Shareholders will be allowed to buy one share of common stock for every 10 rights they are granted.

Unity did not disclosed when it would hold the rights offering and the filing's maximum offering price of $7.92 a share was only provided to calculate the registration fee. The company said it could raise up to $5.7 million, though its board intends to bring in $3 million to $5 million in capital.

The company said it would use proceeds from the offering for general corporate purposes, including increased lending.

Unity also said the capital would replenish capital it used to exit the Troubled Asset Relief Program last year. The company redeemed about $20.6 million in preferred stock, and repurchased warrants from the Treasury for $2.7 million, to exit Tarp.