Customers Bancorp Inc. closed a public offering of about $74.8 million aggregate principal amount of 5.375% subordinated notes due 2034, which included about $9.8 million of notes issued pursuant to the full exercise by the underwriters of their overallotment option.
The price to the purchasers was 100% of the principal amount of the notes. Interest will be paid quarterly in arrears on March 30, June 30, Sept. 30 and Dec. 30 of each year, starting March 30, 2020.
The Wyomissing, Pa.-based company expects to receive net proceeds of approximately $72.1 million from the offering, after deducting underwriting discounts and commissions and estimated offering expenses.
Customers Bancorp expects to use the net proceeds for general corporate purposes, which may include working capital and the funding of organic growth at the company's unit, Customers Bank. The company may also use a portion of the net proceeds to redeem shares of its preferred stock once they become redeemable, repurchase common shares or fund possible future acquisitions of other financial services businesses.
Customers Bancorp applied to list the subordinated notes on the NYSE under the symbol CUBB. If approved for listing, trading in the notes is expected to start within 30 days after the closing date.
B. Riley FBR Inc., D.A. Davidson & Co. and Janney Montgomery Scott LLC were the joint book-running managers for the offering, while William Blair & Co. LLC and Boenning & Scattergood Inc. were the lead managers. Incapital LLC, Maxim Group LLC and Wedbush Securities Inc. were the co-managers.
Stradley Ronon Stevens & Young LLP was counsel to Customers Bancorp, while Sidley Austin LLP was counsel to the underwriters in connection with the offering.