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PrivateBancorp to raise $200 mln for TARP repayment

Oct 10 (Reuters) - PrivateBancorp Inc plans toraise about $200 million to repay the bailout funds it receivedfrom the U.S. Treasury under the Troubled Asset Relief Program(TARP).

The lender intends to buy back all of the $243.8 million ofpreferred stock it issued to the Treasury in the aftermath of2008 financial crisis.

PrivateBancorp will raise $75 million in an underwrittenpublic offering of its common stock and the rest in debt, thecompany said.

The Chicago-based bank also reported third-quarter earningsthat beat analysts' expectations as it set aside less money tocover soured loans.

The company reported net income available to commonstockholders of $19.6 million, or 27 cents per share. Analystsexpected earnings of 22 cents per share, according to ThomsonReuters I/B/E/S.

Provision for loan losses fell about 59 percent.

PrivateBancorp shares were down about 2 percent in extendedtrade. They closed at $15.92 on the Nasdaq on Wednesday.

(Reporting by Eileen Anupa Soreng and Avik Das in Bangalore;Editing by Sriraj Kalluvila)

((eileen.soreng@thomsonreuters.com; within U.S. +1 646 2238780; outside U.S. +91 80 4135 5919; Reuters messaging:eileen.soreng.thomsonreuters.com@reuters.net))

Keywords: PRIVATEBANCORP TARP/