Preferred Bank’s $150 Million Notes Offering

Holland & Knight LLP advised Piper Sandler & Co., as the bookrunner, and Raymond James & Associates, Inc., Stephens Inc. and B. Riley Securities, Inc. as co-managers on the deal.

Preferred Bank, (Nasdaq: PFBC), one of the larger independent California banks, announced the completion of a public offering and sale of $150 million in aggregate principal amount of its 3.375% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”). The aggregate public offering price was $150,000,000 and the aggregate underwriting discounts and commissions were $1,875,000. The Notes were sold at par, resulting in net proceeds, after discounts and estimated offering expenses, of approximately $147,650,000. The Bank has a BBB+ rating of its subordinated debt from the Kroll Bond Rating Agency.

The Bank expects to use the net proceeds from the offering to redeem $100 million of the Bank’s 2016 fixed-to-floating rate subordinated debentures, plus accrued but unpaid interest thereon, and for general corporate purposes, which may include, among other things, funding loans or purchasing investment securities for the Bank’s portfolio. Also, as a result of the redemption of the existing $100 million of subordinated notes, the Bank expects to incur approximately $614,000 in pre-tax debt extinguishment costs in the second quarter of 2021.

Piper Sandler & Co. served as the bookrunner and Raymond James & Associates, Inc., Stephens Inc., and B. Riley Securities, Inc. served as co-managers. Manatt, Phelps & Phillips, LLP represented the Bank and Holland & Knight LLP acted for the initial purchasers.

Holland & Knight Partners Mark Goldschmidt (Picture) and Kevin Houlihan and Associates Amelia Occhino and Alexander Weaver led the firm’s representation of Piper Sandler & Co. in the transaction.



Involved fees earner: Mark Goldschmidt – Holland & Knight; Kevin Houlihan – Holland & Knight; Amelia Occhino – Holland & Knight; Alex Weaver – Holland & Knight;

Law Firms: Holland & Knight;

Clients: B. Riley Securities; Piper Sandler; Raymond James & Associates, Inc.; Stephens Inc.;

Author: Martina Bellini