Tower Bancorp of Harrisburg, Pa., said it is looking to raise $44.5 million in capital less than a week after closing its long-delayed acquisition of First Chester County Corp.
Tower said Thursday that it was selling common stock through a public offering. The $2.7 billion-asset Tower said it would sell 2.2 million shares at $20.25 a share, or a 10% discount to Wednesday's closing price.
Tower said in a press release that it could use the proceeds to make distributions to unit Graystone Tower Bank, lending activities, debt repayment and acquisitions, among other things.
Due to an overallotment allowance, Tower could sell another 330,000 shares, representing more than $6.6 million in additional proceeds. Analysts said the offering would help bolster the company's capital ratios, which dipped after the First Chester purchase.
