Park National Corporation Announces $5.0 Million Capital Raise
NEWARK, Ohio, Dec. 8, 2010 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE Amex:PRK) has entered into agreements with institutional investors for a direct sale of an aggregate of 71,984 common shares and additionally, the issuance of warrants to purchase shares of Park common stock in the future. Gross proceeds from the sale of the common shares and warrants total $5.0 million or $69.46 per share. Park's closing stock price was $69.46 per share on December 2, 2010 and $69.91 on December 7, 2010. The closing of the offering is expected to take place on December 10, 2010.
As part of the agreements announced today, the Park warrants are exercisable to purchase in aggregate, 71,984 common shares with an exercise price of $76.41 per share, or 110 percent of the price per share at which the initial $5.0 million of common stock and warrants was sold. The Series A warrants to purchase 35,992 common shares expire six months after the closing date and the Series B warrants to purchase 35,992 common shares expire 12 months after the closing date. The common shares, the warrants and the common shares underlying the warrants are to be issued under Park's shelf registration statement.
"We are pleased again to raise additional capital without selling our stock at a discount to the market price on December 2, 2010. Our strong financial performance is attractive to investors. As a result, the investors purchased the stock, along with warrants, at an exercise price of $76.41 per share, a 10 percent premium," said Park Chairman C. Daniel DeLawder. Capital-raising activities since April of 2009 have increased Park's common shares outstanding by 1,413,256 shares, generating a net total of $87 million in additional capital.Park intends to use the proceeds from this direct sale for general corporate purposes and to take advantage of strategic opportunities that may arise. General corporate purposes may include acquisition opportunities, capital expenditures, investments in or loans to subsidiaries, payment or refinancing of debt, and partial or complete repayment of Park's financial commitments in the U.S. government's TARP Capital Purchase Program.
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