First Niagara Will Offer $300 Million In Stock

LOCKPORT, N.Y. (AP) — First Niagara Financial Group Inc. said Monday it will offer $300 million in stock in a public offering, partly to pay back stock issued to the U.S. Treasury.

The offering will be made through Keefe Bruyette & Woods and Goldman Sachs & Co. Underwriters will have the option to purchase an additional 15 percent of shares to cover overallotments.

Net proceeds will be used to improve capital levels as it closes an acquisition of 57 Western Pennsylvania bank branches from National City Bank. It will also be used to help repay $184 million in preferred stock issued to the U.S. Treasury Department under the capital purchase program, as well as general corporate purposes. ...