Overview of Coastal Financial Corporation's Stock Offering
Coastal Financial Corporation (NASDAQ: CCB), which serves as the holding company for Coastal Community Bank, engages in a significant development by announcing a new public offering. This recent initiative involves an underwritten public offering of 1,200,000 shares of common stock, listed at a public rate of $71.00 per share.
Funding Goals for the Offering
The total projected gross proceeds from this offering is expected to reach around $85.2 million before transaction fees, including underwriting discounts and other expenses. In addition, the underwriters have the option to acquire an extra 180,000 shares, potentially raising total proceeds to approximately $98 million if fully exercised. Such financial resources are pivotal as Coastal intends to deploy the proceeds for general corporate objectives. These plans might include supporting growth investments as well as enhancing the Bank's operational capabilities.
Details on the Underwriting Managers
Coastal Financial has partnered with notable financial entities for this venture. Keefe, Bruyette & Woods, a Stifel company, spearheads the offering as the lead book-running manager. Additionally, Hovde Group, LLC serves as a joint book-running manager, with Raymond James & Associates, Inc. and Stephens Inc. acting as co-managers. This strong backing facilitates a robust platform for the offering.
Regulatory Framework and Prospective Documents
The stock offering will be conducted under an effective shelf registration statement on Form S-3, which received approval from the U.S. Securities and Exchange Commission. Coastal has submitted a preliminary prospectus supplement for regulatory review while a final version will follow to provide investors with comprehensive details regarding the offering. Those interested in further documents can access them through the SEC’s EDGAR platform, ensuring transparency throughout the process.
About Coastal Financial Corporation
Headquartered in Everett, Washington, Coastal Financial Corporation operates as a bank holding company. The company's primary subsidiary, Coastal Community Bank, holds assets of approximately $4.07 billion, offering banking services across 14 branches located in various counties, along with internet and mobile banking platforms. Furthermore, the Bank also engages in service provisions targeted at broker-dealers and digital financial service providers through its CCBX segment, allowing other brands to incorporate financial services using the Bank's established infrastructure.
Company Leadership and Communication
For inquiries related to this offering or the company, Joel Edwards, the Chief Financial Officer, can be reached at 425-357-3687. For further support or clarifications, stakeholders can also use email communications directed to the company’s appointed email contact.
Frequently Asked Questions
What is the purpose of Coastal's public offering?
The offering aims to generate funds for general corporate purposes, including investments and supporting the Bank's growth.
How much is Coastal Financial Corporation looking to raise?
The company is aiming to raise approximately $85.2 million from the offering before expenses.
Who are the underwriters for this stock offering?
Keefe, Bruyette & Woods leads the underwriting, with Hovde Group, LLC, Raymond James, and Stephens Inc. also involved.
When is the expected closing date for the offering?
The closing of the offering is anticipated to occur shortly after the regulatory conditions are met.
Where can I find more information about this offering?
Investors can refer to the preliminary prospectus supplement and eventually the final prospectus available through the SEC's EDGAR system.
