Park National Corp. in Newark, Ohio, is adding $5 million of common equity to its war chest.
The $7.1 billion-asset company said Wednesday that it had agreements with institutional investors to sell nearly 72,000 shares. The stock was priced at $69.46 a share, or a 0.6% discount to Park National's price on Tuesday. The sales should close on Friday.
The agreements would give investors warrants for another 72,000 shares priced at $76.41, or a 1.1 times the purchase price of the initial investment. Half of the warrants expire in six months and the rest expire after a year.
Park National said it plans to use the proceeds for "strategic opportunities." Proceeds could also be used to redeem the $100 million of preferred shares the company sold to the Treasury Department under the Troubled Asset Relief Program in late 2008.
