First Busey sets price for preferred stock offering

LEAWOOD, Kan. - First Busey Corporation (NASDAQ:BUSE), a financial holding company with a market capitalization of $2.02 billion, has announced the pricing of its public offering of 8 million depositary shares, each representing a 1/40th interest in a share of its Series B preferred stock. The depositary shares, with a liquidation preference of $25 each, will bear an 8.25% annual dividend, paid quarterly starting September 1, 2025. The company has maintained a strong dividend track record, having paid dividends consistently for 37 consecutive years, with a current yield of 4.44%. According to InvestingPro analysis, the stock currently trades at a P/E ratio of 23.49, suggesting premium valuation levels.

The offering, expected to close around May 20, 2025, subject to customary conditions, aims to raise funds for general corporate purposes and to redeem Busey’s 5.25% Subordinated Notes due 2030. Busey also plans to list these depositary shares on the Nasdaq Global Select Market under the ticker symbol "BUSEP".

Joint bookrunning managers for this offering include Piper Sandler & Co., Morgan Stanley & Co. LLC, and Keefe, Bruyette & Woods, Inc., with Janney Montgomery Scott LLC acting as co-manager.

This financial maneuver comes as Busey Bank prepares to merge with CrossFirst Bank on June 20, 2025, expanding its asset base and banking centers across multiple states. Busey’s Wealth Management division oversees $13.68 billion in assets, and its subsidiary FirsTech offers a range of payment technology solutions. InvestingPro data reveals that three analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $23 to $30 per share, suggesting potential upside from current levels.

Busey has received recognition for its workplace culture and community engagement, being named among America’s Best Banks by Forbes and receiving accolades for being a top employer in the financial sector. The company’s financial health score from InvestingPro is rated as "FAIR," with particularly strong metrics in cash flow management and price momentum. Subscribers can access over 30 additional financial metrics and insights about First Busey Corporation.

The details of the offering are available in the prospectus filed with the SEC. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities.

The announcement is based on a press release statement and does not imply any endorsement of Busey’s claims or future performance. It is intended to provide investors with the latest information regarding First Busey Corporation’s financial activities.

In other recent news, First Busey Corporation has announced a quarterly cash dividend of $0.25 per common share, with payment set for April 25, 2025. Shareholders on record as of April 18, 2025, will be eligible for this dividend, underscoring the company’s ongoing commitment to returning value to its investors. The announcement was made via an 8-K filing with the Securities and Exchange Commission, signed by Interim CFO Scott A. Phillips. In related developments, DA Davidson has maintained its Neutral rating on First Busey shares, with a price target of $25. This follows the recent departure of the company’s CFO, Jeffrey D. Jones, which DA Davidson noted as a unique event but unrelated to the company’s acquisition of Cummins Facility Services. First Busey has initiated a national search for a permanent CFO, with Scott A. Phillips stepping in as Interim CFO. Phillips has been with the company since 2019 and brings over 20 years of experience in auditing and financial reporting. The company continues to focus on the integration of the Cummins Facility Services acquisition while managing the executive transition.

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