Pinnacle Financial Partners Inc. of Nashville said Friday that it plans to raise $36.5 million in capital to support its growth.
The $4.1 billion-asset company said it would sell 1 million shares of its authorized but unissued common stock through a private placement to mutual funds and other institutional accounts managed by T. Rowe Price Associates Inc. The price will be $21.50 per share, a 12% discount to Thursday's closing price.
Pinnacle also said it expects SunTrust Bank to extend it a $15 million subordinated term loan to mature in seven years. It would be used as Tier 2 capital.
The private placement is expected to close by July 23 and the loan by July 31.
Though Pinnacle is well capitalized, Harold Carpenter, its chief financial officer, said in an interview Friday that its fast loan growth lately has cut into its capital ratios.
Its second-quarter earnings, which it reported last week, rose 47% from a year earlier, to $8 million, as loans increased 52%.
"We're growing market share faster than we ever have, and we want to take the reins off and let our guys bring in a lot more new customers," Mr. Carpenter said.
