Sun Bancorp, Inc. Announces $20 Million Equity Raise
MOUNT LAUREL, N.J., Aug. 14, 2014
MOUNT LAUREL, N.J., Aug. 14, 2014 /PRNewswire/ -- Sun Bancorp, Inc. (NASDAQ:
SNBC) (the "Company") today announced that it has entered into purchase
agreements to raise approximately $20 million in new equity through a
privately-negotiated sale of its common stock to several institutional and
private equity investors. The Company will issue a total of 1,133,144 shares
in this transaction at a price per share of $17.65, which was priced based on
a 5.2% discount from the closing price on August 11, 2014.
"On July 3rd, 2014, we announced a major restructuring plan in which multiple
strategic decisions were made to reposition the Company for a return to
profitable operations while simultaneously exiting legacy low-impact,
high-risk business lines," said President and CEO Thomas M. O'Brien. "While
the short-term approximate one-time cost of this restructuring was $20
million, the Company and its main subsidiary Sun National Bank have remained
well-capitalized and within both internal and regulatory capital guidelines.
Recently, several new institutional and private equity investors have
expressed an interest in the Company. Therefore, the Board of Directors and
management believed it was prudent to sell additional equity shares to meet
investor demand and further increase capital ratios, while simultaneously
offsetting the capital impact of recently-announced restructuring costs. The
combination of the capital raise and the previously announced balance sheet
reductions will allow the company to execute its new business plan from an
even stronger capital position."
The stock sale is expected to close on or about August 19, 2014, subject to
satisfaction of customary closing conditions. The shares of stock issued in
this transaction have registration rights. "We welcome these new investors and
look forward to building shareholder value for all shareholders over the
coming years," said O'Brien. "I am thrilled to have their support in building
the banking platform that will sustain the new Sun story."
About Sun Bancorp
Sun Bancorp, Inc. (NASDAQ: SNBC) is a $2.9 billion asset bank holding company
headquartered in Mount Laurel, New Jersey. Its primary subsidiary is Sun
National Bank, a full service commercial bank serving customers throughout New
Jersey. Sun National Bank is an Equal Housing Lender and its deposits are
insured up to the legal maximum by the Federal Deposit Insurance Corporation
(FDIC). For more information about Sun National Bank and Sun Bancorp, Inc.,
Cautionary Note Regarding Forward-Looking Statements
Except for historical information contained herein, the statements made in
this press release constitute "forward-looking" statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements may include, but are
not limited to, statements about the Company's plans, objectives, expectations
and intentions. Actual results may differ materially from the results
discussed in the forward-looking statements because such statements involve
certain risks and uncertainties. Additional information on these risks can be
found in the Company's filings with the Securities and Exchange Commission.
SOURCE Sun Bancorp, Inc.
Contact: Mike Dinneen, SVP, Director of Marketing, 856-552-5013,
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