BCB Bancorp, Inc. Completes Private Placement of $40.0 Million of Subordinated Notes

BAYONNE, N.J., Aug. 28, 2024 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the "Company"), Bayonne, NJ (NASDAQ:BCBP), the holding company for BCB Community Bank (the "Bank"), today announced the completion of its private placement of $40.0 million in fixed-to-floating rate subordinated notes due 2034 (the "Notes"), to certain qualified institutional investors. The Notes initially bear a fixed rate of 9.250%, payable semi-annually, for the first five years and will reset quarterly thereafter to the then current three-month Secured Overnight Financing Rate (SOFR) plus 582 basis points. The Notes were assigned an investment grade rating of BBB+ by Egan-Jones Ratings Company. The Company intends to use the net proceeds from the offering for the refinancing of its existing $33.5 million of subordinated notes and for general corporate purposes. The Notes are intended to qualify as Tier 2 capital for the Company for regulatory purposes and the portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank. "We are pleased to announce the successful completion of our subordinated debt offering as well as the positive response to this transaction.  This transaction is in line with our long-term capital management strategy of refinancing our existing subordinated debt in a deliberate and timely manner, and adding additional regulatory capital, all without any dilution to our shareholder base or detriment to our strategic plan.  The Company remains committed to increasing shareholder value, and we believe that this subordinated debt issuance is an important step in that direction," stated Michael Shriner, President and Chief Executive Officer. In connection with the issuance and sale of the Notes, the Company entered into a registration rights agreement with the purchasers of the Notes pursuant to which the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, with substantially the same terms as the Notes. Piper Sandler & Co. served as the sole placement agent for the offering. Stevens & Lee, P.C. served as legal counsel to the Company and Silver, Freedman, Taff & Tiernan LLP served as legal counsel to the placement agent. The Notes have not ...