Flushing prices offering to help repay TARP

Flushing prices public offering, will use proceeds for warrant to repay TARP funds

• On 9:25 am EDT, Thursday September 17, 2009

LAKE SUCCESS, N.Y. (AP) -- Flushing Financial Corp. said Thursday it priced a public offering of 8.3 million shares at $11.50 per share. Excluding overallotment options, the company expects proceeds of $95.7 million.

Flushing Financial, the parent company of Flushing Savings Bank, said it plans to use the proceeds for the warrant to repurchase shares issued to the Treasury Department as part of the bank's participation in the Troubled Asset Relief Program.

It will also use the proceeds to repurchase 70,000 shares of preferred stock and for general corporate purposes.

Flushing has granted the underwriters a 30-day option to purchase up to an additional 1.2 million shares to cover overallotments, if any. It said it expects $90.5 million from the sale after accounting for underwriting discounts, commissions, and estimated offering expenses.

Keefe, Bruyette & Woods Inc. is the lead bookrunning manager. Sandler O'Neill & Partners and Fox-Pitt Kelton Cochran Caronia Waller are co-managers.

Shares of Flushing fell 41 cents, or 3.3 percent, to $11.94 in premarket trading.