First Niagara Financial Group Announces $450 Million Common Stock Offering and Additional Capital Actions

First Niagara Financial Group, Inc. FNFG today announced the commencement of an underwritten public offering of $450 million of its common stock. In addition, First Niagara expects to grant the underwriters a 30-day option to purchase up to $33.75 million of additional shares of common stock. Goldman, Sachs & Co. will serve as the global coordinator for the offering, and Goldman, Sachs & Co., Sandler O'Neill + Partners, L.P., BofA Merrill Lynch and Keefe, Bruyette & Woods, Inc. will serve as joint book-running managers for the offering. In connection with the offering, First Niagara also announced that its Board of Directors intends to reduce the quarterly cash dividend on its common stock to $0.08 per share commencing with the first quarter of 2012, compared to the $0.16 per share that has been paid in recent quarters. The lower dividend payout will preserve approximately $110 million of First Niagara's capital during 2012, accelerating the build of its capital levels following the consummation of the HSBC acquisition. Subject to market conditions, First Niagara expects to commence separate underwritten public offerings of $350 million aggregate liquidation preference of perpetual non-cumulative preferred stock and $300 million aggregate principal amount of subordinated notes in the near future.