MidWestOne Financial Group in Iowa City, Iowa has raised $8.4 million in a private placement of its common stock.
The $1.8 billion-asset holding company sold 300,000 newly issued shares at $28 per share, and it received net proceeds of $7.9 million after expenses and fees. Each purchaser was an existing MidWestOne shareholder. The sale closed on Tuesday.
MidWestOne plans to use the proceeds to retire certain debt instruments and expand its bank subsidiaries, MidWestOne Bank in Iowa City and Central Bank in Golden Valley, Minn.
Sandler O'Neill & Partners was placement agent for the offering. Barack Ferrazzano Kirschbaum & Nagelberg was legal counsel to MidWestOne.