UPDATE 1-Fulton Financial prices $230 million stock offering

Fri Apr 30, 2010 9:38am EDT

* Says 21.8 mln stock offering priced at $10.55/shr

* Offering priced at 5 pct discount to Thursday's close

* Shares fall 4 percent

April 30 (Reuters) - U.S. regional bank Fulton Financial (FULT.O) said its 21.8 million share offering was priced at $10.55 a share, a 5 percent discount to its closing price Thursday, sending its shares down 4 percent.

On Wednesday, the bank said it would offer $230 million in common stock and use the net proceeds to pay back government bailout funds. [ID:nSGE63S0N1]

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

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

Shares of the company fell 4 percent to $10.58. They recouped some losses to trade at $10.60 in early trade Thursday on Nasdaq. (Reporting by Jochelle Mendonca in Bangalore; Editing by Jarshad Kakkrakandy)