OceanFirst Financial Corp. has just announced the pricing of a public offering of $185.0 million aggregate principal amount of 6.375% fixed-to-floating rate subordinated notes due 2035. The notes carry an initial interest rate of 6.375% per annum from the original issue date to, but excluding, November 15, 2030, payable semiannually in arrears. After this period, the interest will transition to a floating rate per annum equal to a benchmark rate, expected to be three-month term SOFR, plus a spread of 307.5 basis points, payable quarterly in arrears.
The net proceeds of the offering are estimated to be approximately $181.9 million, after deducting underwriting discounts and estimated offering expenses payable by the company. OceanFirst Financial Corp. intends to utilize the net proceeds to repay existing indebtedness, including the redemption in full of the company’s 5.25% fixed-to-floating rate subordinated notes due May 15, 2030, to support growth initiatives at its subsidiaries, and for general corporate purposes.
The offering is expected to close on October 29, 2025, and is subject to the satisfaction of customary closing conditions. Piper Sandler & Co. and Keefe, Bruyette & Woods, a Stifel company, are acting as joint book-running managers for the offering. Luse Gorman, PC is acting as legal counsel to the company, and Freshfields US LLP is acting as legal counsel to the underwriters.
OceanFirst Financial Corp., the holding company for OceanFirst Bank N.A., serves business and retail customers throughout New Jersey and the major metropolitan areas between Massachusetts and Virginia. The company's subsidiary, OceanFirst Bank N.A., founded in 1902, is a $14.3 billion regional bank that delivers commercial and residential financing solutions, wealth management, and deposit services. Following these announcements, the company's shares moved 0.81%, and are now trading at a price of $18.74. If you want to know more, read the company's complete 8-K report here.
