Heritage Financial Corp. in Olympia, Wash., is taking a 10% discount to its common stock to raise $50 million of fresh capital.

The $1.25 billion-asset company said Thursday that it would sell 3.85 million shares at $13 a share, or 90% of its closing stock price Wednesday, when the company announced the capital plan.

On Friday, the stock fell, 2.8%, to close at $13.34 a share.

Heritage said it expects net proceeds of $47 million, which it would use for organic growth or acquisitions. The offering is expected to close on Dec. 15.

Heritage said it could use some proceeds to buy the $24 million of preferred stock it sold to the Treasury Department through the Troubled Asset Relief Program.

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