Pinnacle Financial to sell additional shares

Bank operator Pinnacle Financial Partners Inc. said its lead underwriter for a public offering of $109 million in shares has exercised an option to buy nearly 1.2 million additional shares of Pinnacle's common stock to cover over-allotments.

Raymond James & Associates Inc. will purchase an additional 1,155,000 shares, Pinnacle said Thursday after announcing the offer to sell 7.7 million shares would be priced at $13 per share of common stock.

The offering gave underwriters the option buy up to an additional 15 percent of the offered amount of stock from Pinnacle at the public offering price, minus costs, within 30 days.

Net proceeds from the offering, including the overallotment option, total about $109.1 million, Nashville-based Pinnacle said.

The proceeds will be used for general corporate purposes, including providing additional capital for Pinnacle and the possible repurchase from the U.S. Treasury of $95 million of preferred shares and warrants issued in connection with the TARP Capital Purchase Program.

Pinnacle currently has about 24.1 million shares outstanding.

Shares of Pinnacle fell 39 cents, or about 2.7 percent, to $13.87 in Friday afternoon trading.