UPDATE 1-Fulton offers $230 mln in shares; plans to repay TARP

Thu Apr 29, 2010 5:20pm EDT

* Plans to use net proceeds to repay TARP

*Shares down 3 pct after market

April 29 (Reuters) - U.S. regional bank Fulton Financial Corp (FULT.O) said it was offering $230 million in common stock, and intended to use the net proceeds to repay bailout funds.

The bank said it would redeem the stock issued to the U.S. Treasury following authorization from banking regulators and formal approval from the Treasury.

The parent company of Fulton Bank N.A., received $376.5 million in bailout funds from the U.S. Treasury.

Barclays Capital is acting as the sole book-running manager for the offering, Fulton said.

Its shares were down 3 percent at $10.71 in after market trade. They closed at $11.05 Thursday on Nasdaq. (Reporting by Brenton Cordeiro in Bangalore; Editing by Aradhana Aravindan)

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