BanCorp Down 10% After Announcement of Stock Sale
BanCorp South (NYSE: BXS) shares are down more than 10% today after the company announced plans to sell stock.
The company announced that it has commenced an underwritten public offering of $100 million of its common stock. The Company intends to grant the underwriters a 30-day option to purchase up to an additional 15 percent of common shares sold pursuant to this transaction. All of the shares are being offered by the Company.
The Company intends to use the net proceeds of this offering for general corporate purposes, including to maintain certain capital levels and liquidity at the Company, potentially provide equity capital to BancorpSouth Bank, fund growth either organically or through acquisition of other financial institutions, insurance agencies, or other businesses that are closely aligned to the operations of the Company, and fund investments in its subsidiaries.
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