First Horizon prices stock offer at $10 per share

MEMPHIS, Tenn.—First Horizon National Corp. said Tuesday it priced a public offering of 60 million shares of common stock at $10 per share.

The price is a 9 percent discount from Monday's closing price of $10.99.

The new capital -- with net proceeds estimated at $572 million -- will be used for general corporate purposes, and will likely help shore up the bank's capital base as it faces continued deterioration in the lending markets.

Lending markets have deteriorated rapidly since the middle of 2007, forcing many banks to increase loss reserves to cover troubled loans. Because of mounting reserves and a slowing economy, banks have been raising cash to shore up their capital positions.

In a recent research report, Keefe, Bruyette & Woods Inc. analysts said First Horizon would need to raise $1 billion as it faces rising losses on its construction and home equity lending portfolios.

Underwriters have an option to purchase up to an additional 9 million shares as part of the offer, which was initially announced Monday.