OceanFirst Financial Corp. Completes Full Redemption of Preferred Shares
OceanFirst Financial Corp. (NASDAQ: OCFC) is set to redeem all outstanding shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. This move underscores the company’s solid financial standing and commitment to optimizing its capital structure.
Details of the Redemption
The company has announced that it will redeem 57,370 shares of the preferred stock, which constitutes the entirety of the Series A Preferred Stock offering. This complete redemption will be executed on the next scheduled dividend payment date, a strategic move that reflects OceanFirst's robust capital management.
Investors holding the Series A Preferred Stock will receive a cash redemption price of $1,000 per share, which translates to $25 per Depositary Share. Notably, this amount does not include the dividend that has been previously declared and will be paid out prior to the redemption. This ensures that existing shareholders maintain their rights until the redemption takes place.
Impact on Shareholders
As part of this process, the depositary for the Series A Preferred Stock will also redeem 2,294,800 Depositary Shares, each representing a fractional interest in the preferred stock. The redemption will be conducted through The Depository Trust Company, adhering to established procedures for the handling of these shares.
This redemption will officially take effect on the specified Redemption Date. Following this date, no additional dividends will accrue on the Series A Preferred Stock, and all rights concerning the shares will be terminated, except for the right to receive the outlined redemption price. This illustrates the firm commitment of OceanFirst Financial Corp. to its financial strategy.
Leadership Insights
Patrick Barrett, the Senior Executive Vice President and Chief Financial Officer of OceanFirst, expressed satisfaction with this strategic move. He highlighted that the organization's robust capital and liquidity levels are advantages that enable them to reduce liabilities associated with higher funding costs. This redemption aligns perfectly with OceanFirst’s ongoing strategy to strengthen its balance sheet.
A Commitment to Financial Health
By optimizing its capital structure and reducing higher-cost liabilities, OceanFirst positions itself favorably for future growth. This measure is indicative of responsible financial management and a disciplined approach to capital allocation.
About OceanFirst Financial Corporation
Founded over a century ago, OceanFirst Financial Corp. operates OceanFirst Bank N.A., a prominent regional bank with a strong presence across New Jersey and substantial reach into the metropolitan areas stretching from Massachusetts to Virginia. The bank offers a diverse range of financial services, encompassing commercial and residential financing, treasury management, trust and asset management, as well as deposit services. Its longstanding history and community-centric approach make it one of the most significant banks in its region.
With a mission to provide accessible and reliable financial solutions, OceanFirst continues to thrive, evolution its offerings to meet the changing needs of its customers and communities.
Company Contact:
Alfred Goon
SVP Corporate Development and Investor Relations
OceanFirst Financial Corp.
Tel: 1.888.623.2633 ext. 27423
Email: agoon@oceanfirst.com
Frequently Asked Questions
What is the main announcement by OceanFirst Financial Corp.?
OceanFirst Financial Corp. has announced the complete redemption of its outstanding Series A Preferred Stock.
How many shares are being redeemed?
A total of 57,370 shares of the 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock will be redeemed.
What will investors receive upon redemption?
Investors will receive a cash redemption price of $1,000 per share, which does not include a previously declared dividend.
When is the redemption date?
The redemption is scheduled to take place on the next dividend payment date, which has been set by the company.
What are OceanFirst's key strengths highlighted in this announcement?
The company’s strong capital and liquidity levels enable it to pay off higher-cost liabilities, showcasing its commitment to financial strength and effective capital management.
