Heritage Financial prices offer at $11.50 a share

Heritage Financial prices offering at $11.50 per share

• On 1:14 pm EDT, Thursday September 17, 2009

OLYMPIA, Wash. (AP) -- Heritage Financial Corp. said Thursday it has priced an underwritten public offering of 3.8 million shares at $11.50 per share.

Net proceeds of $40.5 million are expected after underwriting discounts, commissions and offering expenses are deducted.

Heritage intends to use the money to support possible acquisitions, organic growth and general corporate purposes. The capital will also position the company for the future redemption of some or all of the preferred stock issued to the U.S. Treasury under the TARP Capital Purchase Program.

The company intends to close the transaction on Sept. 22.

Keefe, Bruyette & Woods Inc. is serving as lead book-running manager of the offering, and D.A. Davidson & Co. is a co-manager.

The company has granted the underwriters a 30-day option to purchase up to an additional 15 percent of the shares sold to cover over-allotments, if any.

Shares fell 25 cents, or 2 percent, to $12.26 in afternoon trading.