Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) Completes Private Placement Of Subordinated Notes

Boston, MA 09/02/2014 (wallstreetpr) – services provider Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) disclosed that it had completed a private placement of subordinated notes amounting to $60 million to some accredited investors.

Interest Rate

The company stated that the subordinated notes would carry a fixed rate of interest of 5.75% a year. The interest would be payable once in six months, and the notes would be eligible for the maturity on September 3, 2024.

Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) expects to realize net proceeds of about $59 million from the sale of these subordinated notes. For the regulatory purposes, these notes would qualify as Tier 2 capital. The company also disclosed that it plans to make use of the net proceeds for general corporate purposes with a view to supporting opportunistic acquisition, as well as, organic growth. It had indicated that it was not averse to indulge in acquisition at the appropriate time.

Rating of Notes

Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) had also obtained ratings for its subordinated debt offering recently from Kroll Bond Rating Agency. The rating agency had allocated Investment grade rating of BBB+ and BBB for its senior secured debt, as well as, subordinated debt respectively. These apart, the rating firm had also assigned A- for the company’s senior deposit program.

Borrowings Increase

Following the completion of the private placement of subordinated notes, the company’s borrowing would increase. At the end of the second quarter, it had borrowings of $255.29 million, which was significantly higher than $95.51 million at the end of the first quarter.

Pacific Premier also had subordinated debentures worth $10.31 million at the end of June quarter. This would increase to $70.31 million at the end of the third quarter.

During the second quarter announcement of financial results, the Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) had indicated that it expects strong deposit inflows during the second half of the current calendar year to be fueled by fresh customer additions. The company also expects to attract more commercial customers in Southern California where it sees good opportunities through a business mix.

 

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss