By James McCandless
San Antonio, May 4 – OceanFirst Financial Corp. priced a $55 million offering of $25-par series A fixed-to-floating rate non-cumulative perpetual preferred stock (Kroll: BBB-) with an initial dividend of 7%, according to an FWP filing with the Securities and Exchange Commission.
There is an $8.25 million greenshoe.
Piper Sandler & Co. and Raymond James & Associates, Inc. are the joint bookrunners.
Dividends are payable on Feb. 15, May 15, Aug. 15 and Nov. 15 starting on Aug. 15, 2020.
The dividend is fixed until May 15, 2025, then converts to a rate of the three-month SOFR plus 684.5 basis points.
The preferreds are redeemable beginning May 15, 2025. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.
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 plans to list the preferreds on the Nasdaq under the symbol “OCFCP.”
OceanFirst is a Red Bank, N.J.-based bank holding company.
| Issuer: | OceanFirst Financial Corp.
|
| Description: | Series A fixed-to-floating rate non-cumulative perpetual preferred stock
|
| Amount: | $55 million, or 2.2 million shares
|
| Greenshoe: | $8.25 million, or 330,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Piper Sandler & Co. and Raymond James & Associates, Inc.
|
| Dividend: | 7% until May 15, 2025, then converts to a floating rate of the three-month SOFR plus 684.5 bps
|
| Price: | Par of $25.00
|
| Yield: | 7%
|
| Call: | On or after May 15, 2025; prior to that, within 90 days after a regulatory capital treatment event
|
| Pricing date: | May 1
|
| Settlement date: | May 7
|
| Rating: | Kroll: BBB-
|
| Distribution: | SEC registered
|
| Listing: | Nasdaq: OCFCP
|
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