Tower Bancorp (TOBC) Prices Offering of 1.969M Shares at $26.75

August 28, 2009 12:45 PM EDT

Tower Bancorp, Inc. (NASDAQ: TOBC) announced today that it has priced a public offering of 1,968,509 shares of its common stock, including 99,350 shares offered by certain officers and directors of the Company, at $26.75 per share. Raymond James & Associates, Inc. is serving as lead book-running manager of the offering with Keefe, Bruyette & Woods, Inc. and Stifel, Nicolaus & Company, Inc. serving as co-managers. The Company has granted the underwriters a 30-day option to purchase up to an additional 280,374 shares, representing 15% of the total number of shares to be sold by the Company in the offering, to cover over-allotments, if any.

The Company estimates that net proceeds to the Company from the offering will be approximately $47.5 million after deducting underwriting commissions (or approximately $54.6 million if the underwriters exercise their over-allotment option in full), but before deductions for other transaction expenses. The Company intends to use the net proceeds from the offering for general corporate purposes, including contribution to the capital of its bank subsidiary to support the bank subsidiary's lending and investing activities; repayment of its debt; supporting or funding acquisitions of other institutions or branches if opportunities for such transactions become available; and other permitted activities. The Company will not receive any proceeds from the sale of securities by the selling securityholders in the offering.

The Company expects to close the sale of the shares of common stock on September 2, 2009, subject to customary closing conditions.

Related Categories

Equity Offerings

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Related Entities

• Keefe, Bruyette & Woods
• Raymond James

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