Bryn Mawr Bank Corp. has agreed to sell almost $25 million of its common stock to investors.
The Bryn Mawr, Pa.-based company said it has entered into purchase agreements directly with several investors to sell 1.5 million shares of its common stock at $17 per share. That would be a 14 percent discount from Thursday’s closing price of $19.81. The stock was down by more than 7 percent during early Friday morning trading.
The company expects to receive net proceeds of about $24.7 million after deducting placement agents’ fees and other expenses. Bryn Mawr CEO Ted Peters said the bank’s stock price has been “overheated” recently and he is satisfied with the price and the addition of more than 10 institutional investors.
Bryn Mawr (NASDAQ:BMTC), parent to Bryn Mawr Trust Co., said it intends to use the proceeds for working capital and general corporate purposes. Peters, though, said the funds will largely be used for pending acquisitions.
In November, Bryn Mawr agreed to acquire Media, Pa.-based First Keystone Financial Corp. for $34 million, which would increase the bank’s size from $1.2 billion to $1.7 billion in assets and its branch count from eight to 17. Peters said Bryn Mawr would like to acquire another bank and a wealth manager within the next few years and the additional capital will help with that effort.
The closing of the offering is expected to occur next week. Stifel, Nicolaus & Co. was lead placement agent and Keefe Bruyette & Woods and Boenning & Scattergood were placement agents.
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