Chemical in Mich. to Raise $70M in Stock Sale

Chemical Financial (CHFC) in Midland, Mich., expects to raise $70 million through the sale of common stock.

The $6.3 billion-asset company said in a press release that it may use proceeds to cover expenses related to its pending acquisition of Northwestern Bank in Traverse City, Mich. Expenses could include recapitalizing Northwestern, the release said, if Chemical "operates it as a separate bank for a period of time following the merger."

Chemical announced in March that it is acquiring the $837 million-asset Northwestern for roughly $120 million.

Under the terms of the offering, Chemical will grant the underwriters a 30-day option to repurchase an additional 15% of the shares to cover over-allotments.

Keefe, Bruyette & Woods is the book-running manager for the offering. Sander O'Neill & Partners is acting as a co-manager.