Union Bankshares to sell $62.5 million in stock

Union Bankshares plans $62.5 million common stock offering; could use money to repay TARP loan

• On 9:12 am EDT, Tuesday September 8, 2009

BOWLING GREEN, Va. (AP) -- Union Bankshares Corp. said Tuesday it is planning to sell $62.5 million in common stock.

Based on Friday's closing price of $16.21, Union Bankshares would sell about 3.9 million shares of common stock as part of the offering.

The regional bank said it will use the money for general corporate purposes, which could potentially include repaying the loan it received from the government as part of the Troubled Asset Relief Program.

Union Bankshares received $59 million as part of the government's $700 billion program that provided emergency funding to hundreds of banks amid the peak of the credit crisis last fall. To repay the money, Union Bankshares would first need approval from its regulators.

Underwriters will have the option to purchase an additional $9.4 million in stock to cover overallotments.