Business
Peapack-Gladstone Financial Corporation Completes Private Placement of $100 Million of Subordinated Notes
BEDMINSTER, NJ, Dec. 22, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the
About this update from Peapack-gladstone Financial Corporation
[{"type":"text","content":"BEDMINSTER, NJ, Dec. 22, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”), the holding company for Peapack-Gladstone Bank, today announced the completion of its private placement of $100.0 million in fixed-to-floating rate subordinated notes due 2030 (the “Notes”). The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The Notes will initially bear interest at a fixed annual rate of 3.50% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 326 basis points. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include the potential redemption of existing subordinated debentures, acquisitions of wealth management firms and stock repurchases, subject to any applicable regulatory clearances. In connection with the issuance and sale of the Notes, the Company entered into a registration rights agreement with the purchasers of the Notes pursuant to which the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, with substantially the same terms as the Notes. Douglas L. Kennedy, President and CEO of the Company, commented, “We were pleased to have investment grade ratings from both Kroll and Moody’s. We believe those ratings and our ability to raise $100 million of additional Tier 2 capital at one of the lowest rates since the pandemic hit, reflects the strength and quality of our organization and management team. The proceeds of this offering will allow us to be in a position to call a portion of our outstanding debt carrying a higher rate, if we so choose, and support growth initiatives and capital management opportunities, all without dilution to existing shareholders.” Piper Sandler & Co. and Keefe, Bruyette & Woods, A Stifel Company served as joint placement agents for the Notes offering. Luse Gorman, PC served as legal counsel to the Company and Covington & Burling LLP served as legal counsel to the placement agents. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Notes, nor shall there be any sale in any jurisd...