September 24, 2009 (FinancialWire) — First Busey Corp.  (NASDAQ: BUSE) has commenced an underwritten public offering of 18,000,000 shares of its common stock, par value $0.001 per share. Fox-Pitt Kelton Cochran Caronia Waller  LLC is acting as the sole book-running manager of the public offering and FIG Partners, LLC is acting as co-manager for the public offering.

The company will offer the underwriters an option to purchase up to an additional 2,700,000 shares within 30 days form the date of the public offering.

In order to maximize the shares of common stock available for the public offering, the company also had entered into a stock purchase agreement to sell $39.3 million of a new series of 9% mandatorily convertible series preferred stock (series A preferred stock). Pending satisfaction of all the closing conditions, the series A preferred stock will be sold to small group of purchasers that includes all of the company’s directors, various executive officers and one other accredited investor that is an existing stockholder of the company.

Pursuant to the terms of the stock purchase agreement, the closing of the private placement is subject to the closing of the public offering of common stock and the receipt of a regulatory notice by several of the purchasers. Fox-Pitt Kelton Cochran Caronia Waller  LLC has acted as placement agent in connection with the offering of series A preferred stock.

It is intended that the convertible preferred stock will remain outstanding for only a short period of time until the company receives certain stockholder approvals, including approval to amend the company’s articles of incorporation to increase the company’s authorized common stock. Upon receipt of the necessary stockholder approvals, the convertible preferred stock will automatically convert into shares of common stock at the same per share price that the common stock is sold in the public offering. The company expects to hold the special meeting of stockholders in November 2009. The terms of the new series A preferred stock are described in more detail in the company’s Current Report on form 8-K.

The company intends to use the net proceeds from the public offering of common stock and the separate private placement of series A preferred stock for general corporate purposes, including supporting the capital adequacy of Busey Bank, the company’s wholly-owned bank subsidiary. The company intends to continue to maintain Busey Bank as well capitalized for regulatory purposes.

First Busey is a $4.3 billion financial holding company headquartered in Urbana, Illinois.

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