By Stephanie N. Rotondo
Seattle, Sept. 16 – OceanFirst Financial Corp. priced $35 million of 5.125% fixed-to-floating rate subordinated notes due 2026 (Kroll: BBB-), according to an FWP filed with the Securities and Exchange Commission on Friday.
Sandler O’Neill + Partners LP is the bookrunner and Keefe, Bruyette & Woods is the co-manager.
The interest rate is fixed and payable semiannually through Sept. 30, 2021. At that point, the rate begins to float at Libor plus 392 basis points and will be paid quarterly.
The notes become redeemable Sept. 30, 2021 at par plus accrued interest. The company can also redeem the notes in the event of a tax law or regulatory treatment change, or if it is required to register as an investment company under the Investment Company Act of 1940.
The Toms River, N.J.-based parent holding company for OceanFirst Bank plans to use the proceeds from this offering for general corporate purposes, which may include providing capital support for growth, repaying indebtedness and financing investments, capital expenditures, the repurchase of common stock and investments in the bank as regulatory capital.
| Issuer: | OceanFirst Financial Corp.
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| Securities: | Fixed-to-floating rate subordinated notes
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| Amount: | $35 million
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| Maturity: | Sept. 30, 2026
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| Bookrunner: | Sandler O’Neill + Partners LP
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| Co-manager: | Keefe Bruyette & Woods Inc.
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| Coupon: | 5.125% until Sept. 30, 2021, then floating at Libor plus 392 bps
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| Price: | Par of $1,000
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| Call options: | On or after Sept. 30, 2021 at par plus accrued interest; also in the event of a tax law change, a regulatory capital treatment event or if the company is required to register as an investment company under the Investment Company Act of 1940
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 21
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| Expected rating: | Kroll: BBB-
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| Cusip: | 675234 AA6
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