October 29, 2009 (FinancialWire) — Park National Corp. (NYSE AMEX: PRK) has entered into agreements with institutional investors for a direct sale of an aggregate 500,000 common shares and warrants. Gross proceeds from the sale of the common shares and warrants total $30.8 million or $61.59 per share. Park’s closing stock price was $61.59 per share on October 26, 2009 and $61.70 on October 27, 2009. The closing of the offering is expected to take place on November 2, 2009.

As part of the agreements announced, the Park warrants are exercisable for an additional 500,000 common shares with an exercise price of $67.75 per share, or 110 percent of the price per share at which the initial $30.8 million was sold. The series A warrants expire six months after the closing date and the series B warrants expire 12 months after the closing date. The common shares, the warrants and the common shares underlying the warrants are to be issued under Park’s shelf registration statement.

Already a well-capitalized bank holding company, Park will use the proceeds from this direct sale for general corporate purposes and to take advantage of strategic opportunities that may arise. General corporate purposes include acquisition opportunities, capital expenditures, investments in or loans to subsidiaries, payment or refinancing of debt, and partial or complete repayment of Park’s financial commitments in the U.S. government’s TARP Capital Purchase Program.

Park continues to consider other capital-raising alternatives, including the sale of subordinated debentures by either or both Park National Corp. and The Park National Bank, as well as continued sales of common stock through the At-the-Market offering announced May 27, 2009.

In addition to the direct sale, Park sold 288,272 common shares through the ATM offering at an average price of $60.83 (as of September 30, 2009). Net of all selling and due diligence expenses, the ATM offering generated additional capital of $16.7 million. Park will limit future sales of common stock under the ATM offering to $24 million.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent for the direct sale transaction.

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