Privatebancorp Begins Stock Offering to Repay Tarp

Privatebancorp (PVTB) in Chicago is raising capital that it will use to exit the Troubled Asset Relief Program.

The parent of $13 billion-asset PrivateBank said Wednesday it has begun a public offering of roughly $75 million of its common stock and announced plans to hold a separate public offering of $125 million in subordinated debt.

Privatebancorp, which received $244 million from the Treasury Department in January 2009, said it would use the proceeds from the offerings together with its own cash to redeem preferred stock the company issued to the government in exchange for the funds.

The company suggested in June it would exit the Tarp program before the interest rate on the funds re-sets to 9% from 5% in about 15 months.

According to the company, neither the stock nor debt offering depends on the completion of the other.

Shares of Privatebancorp fell 0.06%, to $15.92, Wednesday.