First Niagara Financial Group Inc. has set a sale price of $8.50 per share as part of an underwriting agreement for the sale of 52.94 million shares of common stock, the bank announced Wednesday.
The Buffalo-based financial services institution (NASDAQ: FNFG) expects to raise approximately $434.8 million in net proceeds from the sale. The capital will be used to complete the bank's planned $1 billion purchase of 195 HSBC Bank USA N.A branches in Upstate New York and Connecticut as well as "general corporate purposes," the bank said.
First Niagara has granted underwriters a 30-day option to purchase an additional 3.97 million shares of common stock. It expects to close the transaction Dec. 12.
Additional details on the offering are available here.
The company also said Wednesday it plans a $250 million preferred stock offering to again fund the HSBC branch acquisition.