Clients Bancorp Announces Closing of $ 100,000,000 Senior Note Offering | Company
WEST READING, Pa .– (BUSINESS WIRE) – August 6, 2021–
Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively the “Company” or the “Customers”), today announced the closing of its public tender offer in the aggregate amount of 100 million Senior Variable Rate Bonds maturing in 2031 (the “Bonds”). Interest on the Notes will accrue at a fixed rate equal to 2.875% per annum from the original issue date until August 15, 2026, but excluding, payable semi-annually in arrears, and at a variable rate per annum equal to a reference rate, which is expected to be a three-month SOFR (as defined in the Notes), plus a spread of 235 basis points from August 15, 2026 inclusive, payable quarterly in arrears. The Notes have been offered to the public at 100% of their principal amount.
The Notes have been assigned an investment grade rating of BBB by Kroll Bond Rating Agency, Inc., an independent and unaffiliated rating agency. *
The Company expects to receive net proceeds of $ 98,650,000 from the offering, after deducting sales rebates and commissions and estimated offering costs. The Company intends to use the net proceeds to fund the redemption of all of its outstanding Fixed-to-Floating Perpetual Preference Shares, Series C and Fixed-to-Floating, Non-Cumulative Perpetual Preference Shares, Series D. The Company intends to use any remaining proceeds for general corporate purposes, which may include working capital, debt repayment and providing capital to the customer’s bank.
Keefe, Bruyette & Woods, A Stifel company acted as sole accounting manager and Hovde Group, LLC and Wedbush Securities Inc. acted as co-managers for the offering of the Notes.
Stradley Ronon Stevens & Young, LLP acted as legal counsel to the Company and Squire Patton Boggs (US) LLP acted as legal counsel to the Underwriters in connection with the offering of Notes.
The offering and sale of the Notes was made in accordance with the Company’s current registration statement on Form S-3 (Registration Statement No. 333-239305) previously filed by the Company with Securities and Exchange Commission (the “SEC”), including the prospectus contained therein, the preliminary prospectus supplement dated August 3, 2021 and the final prospectus supplement dated August 3, 2021. You can obtain these documents free of charge by visiting EDGAR at the SEC website at www.sec.gov. Alternatively, the Company, the Underwriters or any broker participating in the Offer will arrange to send you the Prospectus Supplement and accompanying Prospectus if you request it by contacting Keefe, Bruyette & Woods, A Stifel Company, at 787 Seventh Avenue, Fourth Floor, New York, NY 10019, by email at [email protected], by fax at 1 (212) 581-1592 or by calling 1 (800) 966-1559.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor any offer or sale of 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 Notes are not deposits or savings accounts or other obligations of our banking or non-bank subsidiaries and will not be insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or agency.
* A security rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn at any time by the rating agency that assigns it.
Customers Bancorp, Inc. (NYSE: CUBI) is a West Reading, Pa., Banking holding company engaged in the banking industry and related businesses through its banking subsidiary, Customers Bank, a full-service bank with $ 19.6 billion in assets as of June 30, 2021 A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and banking services. loan to small and medium-sized businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile applications, online portals, and a network of offices and branches.
Safe Harbor Declaration
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Bancorp clients, The strategies, Inc’s objectives, beliefs, expectations, estimates, intentions, efforts to raise capital, financial condition and results of operations, performance and future activities. Statements preceded, followed by, or which include the words “may”, “could”, “should”, “pro forma”, “for the future”, “could”, “believe”, “expect”, “Anticipate”, “estimate”, “intention”, “plan” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties, which may change depending on various important factors (some of which, in whole or in part, are beyond the control of Customers Bancorp, Inc.). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause the financial performance of Customers Bancorp, Inc. to differ materially from the goals, plans, objectives, intentions and expectations expressed in these forward-looking statements, including: the negative impact on the US economy, including the markets in which we operate, of the coronavirus epidemic, and the impact of a downturn in the US economy and rising unemployment on the performance of our loan and rental portfolio, the market value of our securities investment, the demand for our products and services and the availability of funding sources; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; the actions we and our customers take in response to these developments and the effects these actions have on our operations, products, services and customer relationships; and the effects of any change in accounting standards or policies. Customers Bancorp, Inc. cautions that the above factors are not exclusive and that neither these factors nor these forward-looking statements take into account the impact of any future event. All forward-looking statements and information set forth herein are based on the current beliefs and assumptions of management as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties associated with our business, we encourage you to consult the documents filed by Customers Bancorp, Inc. with the Securities and Exchange Commission, including its most recent annual report on the Form 10-K for the for the fiscal year ended December 31, 2020, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any changes made, which update update or provide information in addition to the information included in Form 10-K and Form 10 -Q Deposits, if applicable. Customers Bancorp, Inc. does not undertake to update any forward-looking statements, written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under the applicable provisions. right.
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CONTACT: Sam Sidhu, President 484-744-8985
Carla Leibold, Chief Financial Officer 484-923-8802
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: BANKING OTHER PROFESSIONAL SERVICES PROFESSIONAL SERVICES FINANCE
SOURCE: Bancorp Customers, Inc.
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PUB: 06.08.2021 16:30 / DISC: 06.08.2021 16:31