Atlantic Capital Sells $25M in Stock to Help Fund Acquisition

Atlantic Capital Bancshares in Atlanta sold $25 million in capital to help fund its purchase of First Security Group in Chattanooga, Tenn.

The $1.4 billion-asset Atlantic Capital said in a press release Monday that it sold common stock to two funds managed by Stone Point Capital, at $12.60 a share, as part of a private placement. As previously reported, the company also conducted a private placement of subordinated debt to fund the acquisition, which was recently completed.

Atlantic Capital ended up paying $47.1 million in cash, along with about 8.8 million shares of its common stock, for the $1.1 billion-asset First Security.

The merger "creates a premier southeast regional corporate, business and private bank competitively positioned in three attractive metropolitan markets — Atlanta, Chattanooga and Knoxville," Douglas Williams, Atlantic Capital's chief executive, said in the release.