By Katherine Hamilton
Norwood Financial shares retreated after the company said it would initiate a public offering worth $26 a share to help reposition its debt securities portfolio.
The stock was 13% lower at $26.77 on Wednesday. Shares are down about 16% this year.
Norwood said late Tuesday that it will price its public offering of 1 million shares at $26 a share.
The company granted underwriters a 30-day option to purchase up to 150,000 additional shares at the public offering price. If underwriters take full advantage of the overallotment option, the aggregate gross proceeds to the company would be about $30 million.
The offering is expected to close around Thursday.
Norwood said it plans to invest the proceeds into its bank subsidiary to support its capital ratios as it repositions a "substantial portion" of its available-for-sale debt securities portfolio. The funds will also go toward general corporate purposes, stock repurchases and acquisitions.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 18, 2024 11:11 ET (16:11 GMT)
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