OceanFirst Financial Corp. Moves Forward with Subordinated Notes
OceanFirst Financial Corp. Targets Growth with New Offering
OceanFirst Financial Corp. (NASDAQ: OCFC), a prominent regional bank known for its commitment to customer service, recently announced an exciting development in its financial strategy. The bank has priced a public offering of subordinated notes worth $185 million. This move aims to bolster their capital structure and support ongoing growth initiatives.
Details of the Subordinated Notes Offering
The subordinated notes will carry a fixed interest rate of 6.375% until November 15, 2030, after which the interest will shift to a floating rate. This floating rate will be calculated based on a benchmark rate, expected to be the Three-Month Term SOFR, plus a spread of 307.5 basis points. The proceeds from this offering are intended to qualify as Tier 2 capital, which is essential for financial institutions to comply with regulatory requirements.
Closing of the Offering
This financial offering is expected to close shortly, contingent upon achieving customary closing conditions. OceanFirst Financial Corp. aims to ensure that this process is smooth and efficient, reflecting their commitment to transparency and accountability.
Use of Proceeds
Once the offering is complete, the estimated net proceeds will amount to approximately $181.9 million. These funds will be utilized primarily to repay existing debts, including the full redemption of the bank's previous 5.25% subordinated notes due in 2030. Furthermore, the additional capital will support various growth initiatives at OceanFirst's subsidiaries and serve general corporate purposes.
Engagement with Leading Financial Institutions
Piper Sandler & Co. and Keefe, Bruyette & Woods, a Stifel Company, are collaborating with OceanFirst as joint book-running managers for this offering. Their expertise will ensure that the offering penetrates the market effectively, paving the way for capital generation that supports the company's strategic vision.
About OceanFirst Financial Corp.
Founded in 1902, OceanFirst Financial Corp. operates through its subsidiary, OceanFirst Bank N.A., which has grown to be a significant regional bank with assets exceeding $14.3 billion. It serves both business and retail customers throughout New Jersey, as well as major metropolitan areas between Massachusetts and Virginia. The bank not only provides tailored commercial and residential financing solutions but also offers robust wealth management and deposit services.
Community Commitment
As one of the oldest community-based financial institutions in New Jersey, OceanFirst is dedicated to fostering strong relationships with its customers and communities. Their ongoing commitment to social responsibility and customer service sets them apart in the competitive banking industry.
Contact Information
For inquiries regarding this offering, Patrick S. Barrett, Chief Financial Officer of OceanFirst Financial Corp., is available at 888.623.2633 ext. 27507. He can also be reached via email for any specific questions regarding the company and its offerings.
Frequently Asked Questions
What is the purpose of the subordinated notes offering?
The offering aims to strengthen OceanFirst's capital structure and support growth initiatives for its subsidiaries.
What will the proceeds be used for?
Proceeds will be used to repay existing debts, redeem prior notes, and support growth across OceanFirst's operations.
Who is managing the offering?
Piper Sandler & Co. and Keefe, Bruyette & Woods are the joint book-running managers for this offering.
When is the expected closing date for the offering?
The offering is expected to close shortly, pending customary closing conditions.
How does OceanFirst Bank serve the community?
OceanFirst Bank provides financing solutions and banking services while maintaining a strong commitment to social responsibility.
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