Dime greenshoe ups tap of 5.5% perpetual preferreds to $57.5 million

By Wendy Van Sickle

Columbus, Ohio, June 10 – Underwriters for Dime Community Bancshares, Inc.’s reopening of its 5.5% $25-par series A fixed-rate non-cumulative perpetual preferred stock (//BB-) fully exercised their $7.5 million, or 300,000 share, greenshoe, increasing the total deal size to $57.5 million in liquidation preference, according to a news release.

The company sold $50 million liquidation preference amount, or 2 million shares, of the preferreds at $19.87 per share for proceeds of $39.74 million on June 4, as previously reported. With the greenshoe, net proceeds are about $44.3 million.

The preferreds are an add-on to the $74.98 million of the preferreds that priced on Jan. 29. The new preferreds will be fungible with the existing preferreds.

Raymond James & Associates, Inc. is the bookrunner.

Dividends are payable on Feb. 15, May 15, Aug. 15 and Nov. 15, starting on Aug. 15, 2020.

The preferreds are redeemable on or after June 15, 2025. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

Dime plans to use the proceeds for general corporate purposes.

Dime is a New York-based bank holding company.

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