BEDMINSTER, NJ, Dec. 22, 2020 (World NEWSWIRE) — by means of NewMediaWire — Peapack-Gladstone Economic Corporation (NASDAQ Worldwide Find Sector: PGC) (the “Company”), the keeping corporation for Peapack-Gladstone Lender, now announced the completion of its personal placement of $100. million in fixed-to-floating price subordinated notes owing 2030 (the “Notes”).
The Notes are meant to qualify as Tier 2 capital for regulatory purposes. The Notes will initially bear interest at a fastened yearly level of 3.50% for the initially 5 years and will reset quarterly thereafter to the then present a few-thirty day period SOFR level in addition 326 basis points.
The Organization intends to use the net proceeds from the supplying for general company reasons, which could consist of the potential redemption of present subordinated debentures, acquisitions of wealth management firms and stock repurchases, matter to any applicable regulatory clearances.
In relationship with the issuance and sale of the Notes, the Corporation entered into a registration legal rights agreement with the purchasers of the Notes pursuant to which the Organization has agreed to get sure actions to provide for the trade of the Notes for subordinated notes that are registered underneath the Securities Act of 1933, as amended, with considerably the similar conditions as the Notes.
Douglas L. Kennedy, President and CEO of the Corporation, commented, “We have been pleased to have expense grade ratings from both of those Kroll and Moody’s. We believe that those scores and our means to increase $100 million of extra Tier 2 cash at one particular of the lowest premiums considering the fact that the pandemic strike, demonstrates the energy and excellent of our group and administration crew. The proceeds of this presenting will enable us to be in a placement to connect with a part of our outstanding debt carrying a bigger rate, if we so pick, and assistance growth initiatives and money management prospects, all devoid of dilution to existing shareholders.”
Piper Sandler & Co. and Keefe, Bruyette & Woods, A Stifel Company served as joint placement agents for the Notes presenting. Luse Gorman, Computer system served as legal counsel to the Company and Covington & Burling LLP served as lawful counsel to the placement brokers.
This press launch is for informational uses only and shall not constitute an offer to market, or the solicitation of an give to invest in the Notes, nor shall there be any sale in any jurisdiction in which this kind of an give, solicitation or sale would be illegal prior to registration or qualification less than the securities legislation of any this sort of jurisdiction. The Notes have not been registered under the Securities Act and may well not be supplied or bought in the United States absent registration or an relevant exemption from registration specifications. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance policy Company or any other governing administration company or fund.
ABOUT PEAPACK-GLADSTONE Monetary Corporation
Established in 1921, Peapack-Gladstone Money Corporation is a New Jersey financial institution holding business with overall belongings of $6. billion, and prosperity administration belongings underneath management and/or administration of $7.6 billion as of September 30, 2020. Peapack-Gladstone Financial institution is a industrial lender that provides ground breaking wealth management, business and retail options, together with residential lending and on the net platforms, to firms and buyers. For above 4 generations, Peapack Personal, the Bank’s prosperity administration division, has available extensive money, tax, fiduciary and expense information and methods, to people, family members, privately held companies, relatives workplaces and not-for-revenue companies, which support them build, keep and extend their legacy. Together, Peapack-Gladstone Financial institution and Peapack Non-public give an unparalleled commitment to client provider. Visit www.pgbank.com and www.peapackprivate.com for a lot more facts.
This press launch includes forward-on the lookout statements inside the that means of the Securities and Trade Act of 1934, as amended, like statements of goals, intentions, and expectations as to upcoming trends, designs, functions or effects of Organization functions and insurance policies and pertaining to common financial ailments. In some conditions, forward-looking statements can be discovered by use of words and phrases this kind of as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar phrases or phrases. These statements are primarily based on present and anticipated economic conditions, nationally and in the Company’s marketplace, interest prices and fascination price policy, aggressive aspects, and other disorders which by their character, are not inclined to precise forecast, and are topic to considerable uncertainty. Since of these uncertainties and the assumptions on which this discussion and the ahead-searching statements are dependent, actual future operations and benefits may well differ materially from these indicated herein. Visitors are cautioned from inserting undue reliance on any this kind of ahead-wanting statements. The Company’s earlier effects are not necessarily indicative of long run performance.
As the result of the COVID-19 pandemic and the linked adverse neighborhood and national economic outcomes, we could be topic to any of the pursuing further threats, any of which could have a substance, adverse effect on our business, financial ailment, liquidity, and benefits of operations:
- demand for our merchandise and products and services may well decline, creating it difficult to improve property and income
- if the economy is unable to significantly reopen, and substantial concentrations of unemployment go on for an extended interval of time, mortgage delinquencies, dilemma property, and foreclosures may well raise, resulting in amplified charges and diminished income
- collateral for financial loans, especially genuine estate, could decrease in price, which could trigger personal loan losses to increase
- our allowance for financial loan losses could have to be greater if debtors practical experience financial difficulties, which will adversely have an affect on our internet income
- the internet value and liquidity of bank loan guarantors may possibly drop, impairing their capability to honor commitments to us
- as the consequence of the decrease in the Federal Reserve Board’s focus on federal cash amount to around %, the generate on our property may possibly drop to a better extent than the decrease in our price tag of fascination-bearing liabilities, minimizing our internet desire margin and unfold and decreasing net income
- a materials decrease in net money or a web reduction in excess of quite a few quarters could end result in a lower in the fee of our quarterly money dividend
- our wealth administration revenues may perhaps decrease with continuing marketplace turmoil
- a worsening of organization and economic circumstances or in the money markets could consequence in an impairment of selected intangible assets, these as goodwill
- the unanticipated decline or unavailability of vital employees owing to the outbreak, which could harm our means to function our business enterprise or execute our business enterprise technique, specially as we may possibly not be prosperous in locating and integrating acceptable successors
- we may possibly confront litigation, regulatory enforcement and name chance as a end result of our participation in the Paycheck Protection Approach and the risk that the Tiny Small business Administration may perhaps not fund some or all PPP mortgage guaranties
- our cyber protection dangers are elevated as the end result of an improve in the range of workforce doing work remotely and
- Federal Deposit Insurance plan Corporation rates might boost if the agency working experience extra resolution prices.
A discussion of these and other components that could have an impact on our outcomes is provided in our Securities and Trade Fee filings, like our Once-a-year Report on Variety 10-K for the yr ended December 31, 2019. We undertake no obligation to update any ahead-seeking assertion to conform the assertion to genuine success or variations in the Company’s expectations.
Call: Jeffrey J. Carfora, Senior Govt Vice President and Main Economical Officer, [email protected], 908.719.4308, Peapack-Gladstone Economical Company, 500 Hills Drive, Suite 300, Bedminster, NJ 07921.