2010-12-23 / Local & State

Tower Bancorp Announces Public Offering Of Common Stock

Tower Bancorp Inc. announced last week that it has commenced an underwritten public offering of approximately $44 million of its common stock pursuant to an effective shelf registration statement. Keefe, Bruyette & Woods is serving as sole book-running manager of the offering with Sandler O’Neill & Partners, LP and Janney Montgomery Scott serving as co-managers. The company intends to grant the underwriters a 30-day option to purchase up to an additional 15 percent of the total number of shares to be sold by the company in the offering to cover over-allotments, if any.

The company intends to use the net proceeds from the offering for general corporate purposes, which may include additional capital contributions to its bank subsidiary, Graystone Tower Bank, to support the bank’s lending activities, repayment of its debt, supporting or funding acquisitions of other institutions or branches if opportunities for such transactions become available, and other permitted activities.

The company proposes to issue the shares pursuant to a prospectus supplement to its prospectus dated August 17, 2009, filed as part of its effective registration statement. Prospective investors should read the prospectus in that registration statement, the preliminary prospectus supplement and the other documents incorporated therein by reference that the company filed with the SEC for more complete information about the company and the offering. Investors may obtain these documents without charge by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the prospectus relating to the offering may be obtained from Keefe, Bruyette & Woods Inc., Equity Capital Markets, 787 Seventh Avenue, 4th Floor, New York, NY 10019, or by calling tollfree 800-966-1559. Offers will be made only by means of the prospectus and related prospectus supplement.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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