PFS - Provident Financial Services Inc. Announces Completion of Subordinated Notes Offering and Expected Merger Closing Date for the Lakeland Bancorp Inc. Merger | Benzinga
ISELIN, N.J., May 13, 2024 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the "Company"), the holding company for Provident Bank (the "Bank"), today announced the completion of its offering and sale of $225 million of its 9.00% fixed-to-floating rate subordinated notes due 2034 (the "Notes") in a registered public offering (the "Offering"). The Notes were sold at par, resulting in net proceeds, after discounts and estimated offering expenses, of approximately $219.3 million.
The purpose of the Offering was to satisfy certain previously announced regulatory conditions that were agreed to in connection with the merger (the "Merger Transaction") between the Company and Lakeland Bancorp, Inc. ("Lakeland"). In light of the completion of the Offering, the Merger Transaction is now expected to close after the close of trading on May 15, 2024, pending satisfaction of customary closing conditions. The Company intends to invest all of the net proceeds from the Offering in the Bank. The Bank expects that the net proceeds will be initially invested in securities and used for other general corporate purposes, which may include the repayment of Federal Home Loan Bank advances and other indebtedness. The Notes are intended to qualify as Tier 2 capital at the holding company level and the net proceeds invested in the Bank will qualify as Tier 1 capital at the Bank level for regulatory purposes.
Piper Sandler & Co. and Keefe, Bruyette & Woods, A Stifel Company acted as joint book-running managers for the Offering. Luse Gorman, PC acted as legal counsel to the Company and Holland & Knight, LLP acted as legal counsel to the underwriters.