{"id":404872,"date":"2020-12-22T17:31:33","date_gmt":"2020-12-22T22:31:33","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=404872"},"modified":"2020-12-22T17:31:33","modified_gmt":"2020-12-22T22:31:33","slug":"peapack-gladstone-financial-corporation-completes-private-placement-of-100-million-of-subordinated-notes","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/peapack-gladstone-financial-corporation-completes-private-placement-of-100-million-of-subordinated-notes\/","title":{"rendered":"Peapack-Gladstone Financial Corporation Completes Private Placement of $100 Million of Subordinated Notes"},"content":{"rendered":"
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BEDMINSTER, NJ, Dec. 22, 2020 (GLOBE NEWSWIRE) — via NewMediaWire<\/u><\/a>\u00a0<\/u>—\u00a0Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the \u201cCompany\u201d), the holding company for Peapack-Gladstone Bank, today announced the completion of its private placement of $100.0 million in fixed-to-floating rate subordinated notes due 2030 (the \u201cNotes\u201d).\u00a0 <\/p>\n

The Notes are intended to qualify as Tier 2 capital for regulatory purposes.\u00a0 The Notes will initially bear interest at a fixed annual rate of 3.50% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 326 basis points.<\/p>\n

The Company intends to use the net proceeds from the offering for general corporate purposes, which may include the potential redemption of existing subordinated debentures, acquisitions of wealth management firms and stock repurchases, subject to any applicable regulatory clearances.<\/p>\n

In connection with the issuance and sale of the Notes, the Company entered into a registration rights agreement with the purchasers of the Notes pursuant to which the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, with substantially the same terms as the Notes.<\/p>\n

Douglas L. Kennedy, President and CEO of the Company, commented, \u201cWe were pleased to have investment grade ratings from both Kroll and Moody\u2019s. We believe those ratings and our ability to raise $100 million of additional Tier 2 capital at one of the lowest rates since the pandemic hit, reflects the strength and quality of our organization and management team. The proceeds of this offering will allow us to be in a position to call a portion of our outstanding debt carrying a higher rate, if we so choose, and support growth initiatives and capital management opportunities, all without dilution to existing shareholders.\u201d<\/p>\n

Piper Sandler & Co. and Keefe, Bruyette & Woods,\u00a0A Stifel Company<\/i>\u00a0served as joint placement agents for the Notes offering. Luse Gorman, PC served as legal counsel to the Company and Covington & Burling LLP served as legal counsel to the placement agents.<\/p>\n

This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Notes, nor shall there be any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.\u00a0 The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.\u00a0 The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.<\/p>\n

\n ABOUT PEAPACK-GLADSTONE FINANCIAL CORPORATION<\/b>\n <\/p>\n

Founded in 1921, Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.0 billion, and wealth management assets under management and\/or administration of $7.6 billion as of September 30, 2020.\u00a0 Peapack-Gladstone Bank is a commercial bank that provides innovative wealth management, commercial and retail solutions, including residential lending and online platforms, to businesses and consumers.\u00a0 For over four generations, Peapack Private, the Bank\u2019s wealth management division, has offered comprehensive financial, tax, fiduciary and investment advice and solutions, to individuals, families, privately held businesses, family offices and not-for-profit organizations, which help them establish, maintain and expand their legacy.\u00a0 Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service.\u00a0 Visit\u00a0www.pgbank.com<\/u><\/a>\u00a0and\u00a0www.peapackprivate.com<\/u><\/a>\u00a0for more information.<\/p>\n

\n FORWARD-LOOKING STATEMENTS<\/b>\n <\/p>\n

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions.\u00a0 In some cases, forward-looking statements can be identified by use of words such as \u201cmay,\u201d \u201cwill,\u201d \u201canticipates,\u201d \u201cbelieves,\u201d \u201cexpects,\u201d \u201cplans,\u201d \u201cestimates,\u201d \u201cpotential,\u201d \u201ccontinue,\u201d \u201cshould,\u201d and similar words or phrases.\u00a0 These statements are based upon current and anticipated economic conditions, nationally and in the Company\u2019s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty.\u00a0 Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein.\u00a0 Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company\u2019s past results are not necessarily indicative of future performance.<\/p>\n

As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following additional risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:\u00a0<\/p>\n