Bedminster-based Peapack-Gladstone Financial Corporation announced today it has commenced its previously disclosed rights offering.
According to the announcement, on or about November 8, the company will distribute to holders of its common stock one non-transferable subscription right for each share of common stock held as of October 21, 2013.
The company said in a release each subscription right will entitle its holder to purchase 0.2721 shares of common stock of the Company at a subscription price of $17 per share. Any amount of the offering not purchased by shareholders will be sold to certain standby purchasers. The company has commitments from certain institutional investors to act as standby purchasers in an aggregate amount in excess of the $42 million.
Sandler O'Neill + Partners, L.P. acted as dealer manager in this transaction. Assuming the rights offering is fully subscribed, the company estimates it will receive net proceeds of approximately $40.5 million. The common stock will be sold to the standby purchasers at the same price as the rights offering., the company said in a statement.