Heritage plans public offering of about $35M

Heritage plans public offering of about $35 million in common stock

• On 5:13 pm EDT, Monday September 14, 2009

OLYMPIA, Wash. (AP) -- Heritage Financial Corp. said Monday it commenced a public offering of roughly $35 million of its common stock.

Net proceeds will be used to support acquisitions, organic growth and general corporate purposes.

Heritage says the capital will help position the company for future redemption of some or all of the preferred stock issued to Treasury department under the TARP Capital Purchase Program.

The company currently has roughly 6.7 million shares outstanding.

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 intends to grant underwriters a 30-day option to purchase up to an added 15 percent of the shares sold to cover over-allotments, if any.

Shares of Heritage fell 49 cents, or 3.7 percent, to close at $12.69.