Peapack-Gladstone Secures $50M Preferred Stock Commitment with 6% Dividend
Peapack-Gladstone Financial Corporation raised a $50 million preferred stock commitment from Strategic Value Bank Partners, including $30 million initial private placement and up to $20 million additional issuance through 2027 at a 6.00% dividend rate. The non-cumulative shares qualify as Tier 1 capital, convertible after five years and funding growth.
1. Transaction Details
Peapack-Gladstone Financial Corporation has secured a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners, consisting of an initial $30 million private placement and an option to issue up to $20 million more through December 31, 2027.
2. Capital Structure Impact
The non-cumulative perpetual preferred shares carry a 6.00% annual dividend, are non-callable for the first five years and then redeemable under specified terms, and qualify as Tier 1 capital; they become convertible into common stock at the holder’s option after five years.
3. Strategic Rationale and Use of Proceeds
Proceeds will bolster the bank’s capital base to support organic growth, potential acquisitions and debt reduction, aligning with management’s disciplined capital strategy and ongoing expansion in the New York metropolitan market.