BCB Bancorp, Inc. Completes Private Placement of $40.0 Million of Subordinated Notes
BCB Bancorp, Inc. (NASDAQ: BCBP) has successfully completed a $40.0 million private placement of subordinated notes due 2034. The notes initially bear a fixed rate of 9.250% for the first five years, then reset quarterly to the three-month SOFR plus 582 basis points. Rated BBB+ by Egan-Jones, the notes are intended to qualify as Tier 2 capital for the company and Tier 1 capital for BCB Community Bank.
The proceeds will be used to refinance $33.5 million of existing subordinated notes and for general corporate purposes. This transaction aligns with BCB Bancorp's long-term capital management strategy, providing additional regulatory capital without diluting shareholder value. Piper Sandler & Co. served as the sole placement agent, with Stevens & Lee, P.C. as legal counsel to the company.
BCB Bancorp, Inc. (NASDAQ: BCBP) ha completato con successo un collocamento privato di $40,0 milioni di note subordinate in scadenza nel 2034. Le note hanno inizialmente un tasso fisso del 9,250% per i primi cinque anni, quindi si adeguano trimestralmente al tasso SOFR a tre mesi più 582 punti base. Classificate BBB+ da Egan-Jones, le note sono destinate a qualificarsi come capitale di livello 2 per la società e come capitale di livello 1 per BCB Community Bank.
Il ricavato sarà utilizzato per refinanziare $33,5 milioni di note subordinate esistenti e per scopi aziendali generali. Questa operazione è in linea con la strategia di gestione del capitale a lungo termine di BCB Bancorp, fornendo ulteriore capitale regolamentare senza diluire il valore per gli azionisti. Piper Sandler & Co. ha agito come unico agente di collocamento, mentre Stevens & Lee, P.C. ha fornito consulenza legale alla società.
BCB Bancorp, Inc. (NASDAQ: BCBP) ha completado con éxito un colocación privada de $40.0 millones de notas subordinadas con vencimiento en 2034. Las notas inicialmente tienen una tasa fija del 9.250% durante los primeros cinco años, luego se ajustan trimestralmente al SOFR a tres meses más 582 puntos básicos. Calificadas como BBB+ por Egan-Jones, las notas están destinadas a calificar como capital de nivel 2 para la empresa y capital de nivel 1 para BCB Community Bank.
Los ingresos se utilizarán para refinanciar $33.5 millones de notas subordinadas existentes y para fines corporativos generales. Esta transacción se alinea con la estrategia de gestión de capital a largo plazo de BCB Bancorp, proporcionando capital regulatorio adicional sin diluir el valor para los accionistas. Piper Sandler & Co. actuó como el único agente de colocación, con Stevens & Lee, P.C. como asesor legal de la empresa.
BCB Bancorp, Inc. (NASDAQ: BCBP)는 성공적으로 4천만 달러의 사모채권을 발행하였습니다. 이 채권은 2034년에 만료됩니다. 처음 5년 동안 고정금리 9.250%를 적용받으며, 이후에는 3개월 SOFR에 582 베이시스 포인트가 추가되어 분기별로 조정됩니다. Egan-Jones에 의해 BBB+ 등급을 받은 이 채권은 회사의 2급 자본 및 BCB Community Bank의 1급 자본으로 자격을 갖추도록 설계되었습니다.
그 수익금은 기존의 3천3백50만 달러 상당의 사모채권을 재융자하는 데 사용되며, 일반 기업 용도로 사용됩니다. 이 거래는 BCB Bancorp의 장기 자본 관리 전략과 일치하며, 주주 가치를 희석하지 않으면서 추가 규제 자본을 제공합니다. Piper Sandler & Co.가 유일한 배치 에이전트로 활동했으며, Stevens & Lee, P.C.는 회사의 법률 고문으로 활동했습니다.
BCB Bancorp, Inc. (NASDAQ: BCBP) a réussi à finaliser un placement privé de 40,0 millions de dollars d'obligations subordonnées échéant en 2034. Les obligations portent initialement un taux fixe de 9,250% pendant les cinq premières années, puis se réajustent trimestriellement en fonction du SOFR à trois mois, plus 582 points de base. Notées BBB+ par Egan-Jones, ces obligations sont destinées à qualifier le capital de niveau 2 pour la société et le capital de niveau 1 pour la BCB Community Bank.
Les produits seront utilisés pour refinancer 33,5 millions de dollars d'obligations subordonnées existantes et pour des besoins généraux de l'entreprise. Cette opération s'inscrit dans la stratégie de gestion du capital à long terme de BCB Bancorp, apportant un capital réglementaire supplémentaire sans diluer la valeur pour les actionnaires. Piper Sandler & Co. a agi en tant qu'agent de placement unique, avec Stevens & Lee, P.C. comme conseiller juridique de la société.
BCB Bancorp, Inc. (NASDAQ: BCBP) hat erfolgreich eine Private Placement von 40,0 Millionen Dollar für nachrangige Anleihen mit Fälligkeit im Jahr 2034 abgeschlossen. Die Anleihen haben zunächst einen festsatz von 9,250% für die ersten fünf Jahre, danach erfolgt vierteljährliche Anpassung an den Drei-Monats-SOFR zuzüglich 582 Basispunkte. Unbeteiligte BBB+ von Egan-Jones, sind die Anleihen vorgesehen, um als Tier-2-Kapital für das Unternehmen und als Tier-1-Kapital für die BCB Community Bank zu qualifizieren.
Die Erlöse werden verwendet, um 33,5 Millionen Dollar bestehender nachrangiger Anleihen zu refinanzieren und für allgemeine Unternehmenszwecke. Diese Transaktion steht im Einklang mit der langfristigen Kapitalmanagementstrategie von BCB Bancorp und bietet zusätzliches regulatorisches Kapital, ohne den Wert für die Aktionäre zu verwässern. Piper Sandler & Co. diente als alleiniger Platzierungsagent, mit Stevens & Lee, P.C. als rechtlicher Berater des Unternehmens.
- Successful completion of $40.0 million subordinated notes offering
- Investment grade rating of BBB+ assigned by Egan-Jones Ratings Company
- Notes qualify as Tier 2 capital for the company and Tier 1 capital for the bank
- Refinancing of existing $33.5 million subordinated notes
- Additional regulatory capital raised without shareholder dilution
- High initial fixed interest rate of 9.250% on the subordinated notes
Insights
BCB Bancorp's $40 million subordinated notes issuance is a strategic move to refinance existing debt and boost capital. The 9.250% fixed rate for the first five years is relatively high, reflecting current market conditions and the company's risk profile. This offering strengthens BCB's Tier 2 capital, enhancing its regulatory standing without diluting shareholder equity. The
This debt issuance by BCB Bancorp demonstrates investor confidence in the banking sector, particularly for smaller regional banks. The successful placement indicates a healthy appetite for fixed-income securities in the current market. The
BAYONNE, N.J., Aug. 28, 2024 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), Bayonne, NJ (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today announced the completion of its private placement of
The Company intends to use the net proceeds from the offering for the refinancing of its existing
“We are pleased to announce the successful completion of our subordinated debt offering as well as the positive response to this transaction. This transaction is in line with our long-term capital management strategy of refinancing our existing subordinated debt in a deliberate and timely manner, and adding additional regulatory capital, all without any dilution to our shareholder base or detriment to our strategic plan. The Company remains committed to increasing shareholder value, and we believe that this subordinated debt issuance is an important step in that direction,” stated Michael Shriner, President and Chief Executive Officer.
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.
Piper Sandler & Co. served as the sole placement agent for the offering. Stevens & Lee, P.C. served as legal counsel to the Company and Silver, Freedman, Taff & Tiernan LLP served as legal counsel to the placement agent.
The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. 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. 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.
About BCB Bancorp, Inc.
Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-three branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branch offices in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.
Forward-Looking Statements
This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.
| Contact: | Michael Shriner, |
| President & CEO | |
| Jawad Chaudhry, | |
| EVP & CFO | |
| (201) 823-0700 |
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