M&A

13 November, 2009

UPDATE 1-Lakeland Financial says offering priced at $17/shr

* Offering priced at 7 pct discount

* Part of proceeds to go to banking unit

* Shares down 5 pct

Nov 13 (Reuters) - Bank holding company Lakeland Financial Corp (LKFN.O) said its offering of 3.5 million shares was priced at $17 a share, a discount of 7 percent to the stock's Thursday close.

The company expects to close the sale of common shares on Nov. 18 and use part of the $59.5 million in proceeds for strengthening capital levels of its banking unit.

Lakeland has granted the underwriters an option to purchase up to an additional 525,000 shares to cover over-allotments, if any.

The company has received $56 million in funds from the U.S. Treasury under the government's Capital Purchase Program.

Stifel Nicolaus & Co Inc is serving as sole-book running manager for the offering, the company said in a statement.

Shares of the company were trading down 5 percent at $17.25 before the bell. They closed at $18.23 on Nasdaq Thursday. (Reporting by Sweta Singh in Bangalore; Editing by Anil D'Silva) ((sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net))

Source: http://www.reuters.com