First Niagara Raises $1.1 Billion to Fund Deal

By Matthew Monks December 15, 2011, 11:25 a.m. EST 1 Min Read

First Niagara Financial Group Inc. raised $1.132 billion in a series of debt and equity issuances that ended Wednesday.

The Buffalo bank intends to use the proceeds to buy 195 branches in upstate New York and Connecticut from HSBC Holdings PLC.

It netted $338 million in selling 14 million of preferred shares at $25 apiece on Wednesday, $297 million in an offering Tuesday of subordinated notes due 2021 that pay 7.21% interest, and $467 million after selling 57 million common shares at $8.50 apiece on Monday. That common issuance includes 4 million of shares purchased by underwriters as part of an over-allotment agreement.

First Niagara announced the offerings on Dec. 6.

Reporter, American Banker

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