First Busey Corp. of Illinois plans to sell at least 18 million shares of common stock and $39.3 million in 9% convertible preferred shares to raise funds to boost capital at its Busey Bank unit and other purposes.

The company also expects a "significant" loan-loss provision in the third quarter.

The common-stock sale would dilute current holders by more than half, and that helped send shares down 16.8%, to $5.36.

The convertible preferred stock would be sold to all of First Busey's directors, executives and one accredited investor who is a current shareholder.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.