First Busey To Sell 18 Million Shares Of Stock

URBANA, Ill. (AP) — First Busey Corp. said Monday it plans to sell 18 million shares of common stock. The financial services firm will also sell preferred stock in a separate offering.

Based on Friday's closing price of $6.44, First Busey would raise about $115.9 million from the common stock offering.

The Urbana, Ill.-based financial firm is also planning a sale of $39.3 million in preferred convertible shares. The preferred shares will be sold to a small group of investors, including the firm's directors and executive officers.

The preferred stock will be converted to common shares pending shareholder approval in November for the firm to increase the number of outstanding shares. The preferred shares will be converted to common stock at the same price shares are sold as part of the common stock offering.

Money raised from the two offerings will be used for general corporate purposes, including to bolster capital reserves at its banking subsidiary, Busey Bank.

Underwriters have a 30-day option to purchase an additional 2.7 million shares of common stock to cover overallotments.

First Busey shares fell 93 cents, or 14 percent, to $5.51 in premarket trading.