Horizon Bancorp slides after launching stock offering

Commercial bank Horizon Bancorp's HBNC.O shares fall 6.9% to $14.95 in extended trading

HBNC announces launch of stock offering, with base offering size of $90 million, according to presentation

Proceeds from offering will be used for general purposes, including potential balance sheet repositioning

Keefe, Bruyette & Woods and Performance Trust Capital Partners are the joint book-running managers for the offering

HBNC is mulling dumping $1.4 billion of legacy securities, which might result in an after-tax loss of $238 million

Several regional lenders have turned to bond portfolio rejigs in recent years to boost profitability by dumping low-yielding securities

HBNC has 44.1 million outstanding shares as of June 30, per prospectus

3 of 6 brokerages rate stock "buy" or higher and 3 "hold"; median PT $19 - data compiled by LSEG

As of last close, HBNC stock down 0.3% YTD