By James McCandless
San Antonio, April 30 – OceanFirst Financial Corp. priced a $125 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes (Kroll: BBB) with a coupon of 5.25%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal was announced on Wednesday.
Piper Sandler & Co. is the bookrunner.
The coupon is fixed for until May 15, 2025, then converts to a floating rate of the three-month SOFR plus 509.5 basis points.
The notes are redeemable on or after May 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event, or if the company is required to register as an investment company at par.
OceanFirst plans to use the proceeds for general corporate purposes, which may include providing capital to support its organic growth or growth through strategic acquisitions, repaying debt, financing investments, capital expenditures, repurchasing shares of its common stock and for investments in the bank as regulatory capital.
The company does not plan to list the notes on any securities exchange.
OceanFirst is a Red Bank, N.J.-based bank holding company.
| Issuer: | OceanFirst Financial Corp.
|
| Description: | Fixed-to-floating rate subordinated notes
|
| Amount: | $125 million
|
| Maturity: | May 15, 2030
|
| Bookrunner: | Piper Sandler & Co.
|
| Coupon: | 5.25% until May 15, 2025, then converts to a floating rate of three-month SOFR plus 509.5 bps
|
| Price: | Par of $1,000
|
| Yield: | 5.25%
|
| Call: | On or after May 15, 2025 at par; prior to that, after a tax event, a tier 2 capital event, or if the company is required to register as an investment company at par
|
| Pricing date: | April 29
|
| Settlement date: | May 1
|
| Rating: | Kroll: BBB
|
| Distribution: | SEC registered
|
| Listing: | None
|
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