PITTSFIELD, Mass.--(BUSINESS WIRE)--
Berkshire Hills Bancorp, Inc. (NASDAQ: BHLB) announced today that it has
entered into an underwriting agreement for the sale of 1.4 million
shares of common stock at a price of $21.50 per share for gross proceeds
of approximately $30.1 million, exclusive of any underwriter
over-allotment option. The net proceeds of the offering after deducting
underwriting discounts and commissions and estimated offering expenses
are expected to be approximately $28.0 million.
The underwriters have been granted a thirty day option to purchase up to
an additional 15% of the shares sold to cover over-allotments, if any.
Berkshire's President and Chief Executive Officer Michael P. Daly
stated, "We welcome the strong participation from existing and new
stockholders with this investment in the future of our Company. We are
the largest locally headquartered financial services provider in our
regional markets, integrating deposit, loan, insurance, wealth
management, and investment offerings to the communities that we serve in
Massachusetts, New York, and Vermont. This new capital will allow us to
expand our share of these attractive markets and to take advantage of
opportunities that may develop to enter new markets. We are proud of the
growing role we play in supporting our local economies as an alternative
to national institutions."
The Company expects to close the transaction, subject to customary
conditions, on or about May 15, 2009.
Sandler O'Neill + Partners, L.P. is acting as lead book-running manager
and Keefe, Bruyette & Woods is co-manager for the offering.
The common stock offering may be made only by means of a prospectus and
related prospectus supplement. Copies of the prospectus supplement and
the prospectus relating to the offering may be obtained from Sandler
O'Neill + Partners, L.P., 919 Third Avenue, 6th Floor, New York, NY
10022.
ABOUT BERKSHIRE HILLS
Berkshire Hills Bancorp is headquartered in Pittsfield, Massachusetts.
It has $2.7 billion in assets and is the parent of Berkshire Bank -- America's
Most Exciting BankSM. The Company provides personal and
business banking, insurance, wealth management, and investment services
through 48 financial centers in western Massachusetts, northeastern New
York, and southern Vermont. The Company has entered into an agreement to
acquire CNB Financial Corp., which owns Commonwealth National Bank which
is headquartered in Worcester, Massachusetts and operates six branches
and approximately $300 million in assets. This transaction is based on
an exchange of shares and, subject to various conditions, is expected to
close in the third quarter of 2009. Berkshire Bank provides 100% deposit
insurance protection, regardless of amount, based on a combination of
FDIC insurance and the Depositors Insurance Fund (DIF). For more
information, visit www.berkshirebank.com
or call 800-773-5601.
FORWARD LOOKING STATEMENTS
Statements in this news release regarding Berkshire Hills Bancorp that
are not historical facts are "forward-looking statements". These
statements reflect management's views of future events, and involve
risks and uncertainties. For a discussion of factors that could cause
actual results to differ materially from expectations, see "Forward
Looking Statements" in the Company's 2008 Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q, which are available at the Securities
and Exchange Commission's Internet website (www.sec.gov)
and to which reference is hereby made. Actual future results may differ
significantly from results discussed in these forward-looking
statements, and undue reliance should not be placed on such statements.
Except as required by law, the Company assumes no obligation to update
any forward-looking statements.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any state or jurisdiction
in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
Source: Berkshire Hills Bancorp
Contact: Berkshire Hills Bancorp
Investor Relations Contact
David H. Gonci, 413-281-1973
Corporate Finance Officer
or
Media Contact
Fedelina Madrid, 413-236-3733
Vice President - Marketing