Preferred Bank Reports Completion of $150 Million Debt Offering
16 June 2021 - 10:30PM
Preferred Bank (the “Bank”), (Nasdaq: PFBC), one
of the larger independent California banks, announced the
completion of a public offering and sale of $150 million in
aggregate principal amount of its 3.375% Fixed-to-Floating Rate
Subordinated Notes due 2031 (the “Notes”). The aggregate public
offering price was $150,000,000 and the aggregate underwriting
discounts and commissions were $1,875,000. The Notes were sold at
par, resulting in net proceeds, after discounts and estimated
offering expenses, of approximately $147,650,000. The Bank has a
BBB+ rating of its subordinated debt from the Kroll Bond Rating
Agency.
The Bank expects to use the net proceeds from
the offering to redeem $100 million of the Bank’s 2016
fixed-to-floating rate subordinated debentures, plus accrued but
unpaid interest thereon, and for general corporate purposes, which
may include, among other things, funding loans or purchasing
investment securities for the Bank’s portfolio. Also, as a result
of the redemption of the existing $100 million of subordinated
notes, the Bank expects to incur approximately $614,000 in pre-tax
debt extinguishment costs in the second quarter of 2021.
Piper Sandler & Co. served as the bookrunner
and Raymond James & Associates, Inc., Stephens Inc., and B.
Riley Securities, Inc. served as co-managers. Manatt, Phelps &
Phillips, LLP represented the Bank and Holland & Knight LLP
acted for the initial purchasers.
The Bank has obtained a permit for the sale of
the securities from the Commissioner of the California Department
of Financial Protection and Innovation. This permit is permissive
only and does not constitute a recommendation or endorsement of the
securities sold.
This press release is for informational purposes
only and shall not constitute an offer to sell, or a solicitation
of an offer to buy, the securities, nor shall there be any sale of
the securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The securities are neither insured nor approved by
the Federal Deposit Insurance Corporation.
ABOUT PREFERRED BANK
Preferred Bank is one of the larger independent
commercial banks headquartered in California. The Bank is chartered
by the State of California, and its deposits are insured by the
Federal Deposit Insurance Corporation, or FDIC, to the maximum
extent permitted by law. The Bank conducts its banking business
from its main office in Los Angeles, California, and through eleven
full-service branch banking offices in California (Alhambra,
Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond
Bar, Pico Rivera, Tarzana and San Francisco (2)) and one branch in
Flushing, New York. In addition, the Bank operates a loan
production office in the Houston suburb of Sugar Land, Texas.
Preferred Bank offers a broad range of deposit and loan products
and services to both commercial and consumer customers. The Bank
provides personalized deposit services as well as real estate
finance, commercial loans and trade finance to small and mid-sized
businesses, entrepreneurs, real estate developers, professionals
and high net worth individuals. Although originally founded as a
Chinese-American Bank, Preferred Bank now derives most of its
customers from the diversified mainstream market but does continue
to benefit from the significant migration to California of ethnic
Chinese from China and other areas of East Asia. For more
information about Preferred Bank visit www.preferredbank.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Statements about the Bank’s expectations,
beliefs, plans, predictions, forecasts, objectives, assumptions or
future events or performance are not historical facts and may be
forward-looking. These statements are often, but not always, made
through the use of words or phrases such as “anticipates,”
“believes,” “can,” “could,” “may,” “predicts,” “potential,”
“should,” “will,” “estimates,” “plans,” “projects,” “continuing,”
“ongoing,” “expects,” “intends” and similar words or phrases.
Accordingly, these statements are only predictions and involve
estimates, known and unknown risks, assumptions and uncertainties
that could cause actual results to differ materially from those
expressed in them. All forward-looking statements are necessarily
only estimates of future results, and there can be no assurance
that actual results will not differ materially from expectations,
and, therefore, you are cautioned not to place undue reliance on
such statements. Any forward-looking statements are qualified in
their entirety by reference to the factors discussed in the section
titled “Risk Factors” in the Bank’s offering circular relating to
this offering, including the documents incorporated by reference
therein, and other risks described in documents subsequently filed
by the Bank from time to time. Further, any forward-looking
statement speaks only as of the date on which it is made, and the
Bank undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events.
AT THE COMPANY: |
AT FINANCIAL PROFILES: |
Edward J. Czajka |
Jeffrey Haas |
Executive Vice President |
General Information |
Chief Financial Officer |
(310) 622-8240 |
(213) 891-1188 |
PFBC@finprofiles.com |
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