First Niagara Financial Group, Inc (FNFG) announced its intention to sell $400 million of common stock. Keefe, Bruyette & Woods, Inc. and Sandler O’Neill + Partners, will be the joint book-running managers of the offering and representatives of the underwriters.
Underwriters have an option to purchase up to an additional 15% of the shares sold to cover over-allotments, if any.
The company intends to use the net proceeds from the offering for general corporate purposes. The share issuance will bolster the company’s capital levels, providing it with sufficient cash to grow organically as well as inorganically. This is the third planned capital raise in the past 12 months for First Niagara.
Earlier this month, First Niagara Financial Group, Inc., the bank holding company of First Niagara Bank, completed its acquisition of 57 Western Pennsylvania bank branches with $3,900 million of deposits and $757 million of performing loans from National City Bank, a subsidiary of The PNC Financial Services Group (PNC). The transaction would enable First Niagara to strategically expand its franchise, leverage its strong financial position, and enhance shareholder value. The acquisition is anticipated to be accretive to earnings per share by approximately 20% in 2010.
On July 27, 2009, First Niagara agreed to acquire the Philadelphia-based Harleysville National Corporation (HNBC) financial services company in an all-stock transaction valued at approximately $237 million or $5.50 per share. The deal will provide First Niagara with $5.6 billion in assets including, $3.6 billion in loans and $4.1 billion in deposits in 83 bank branches across nine Eastern Pennsylvania counties.
Read the full analyst report on “FNFG”
Read the full analyst report on “PNC”
Read the full analyst report on “HNBC”
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