August 18, 2020
Cross River Completes $106 Million Subordinated Debt Offering
Additional Proceeds from Private Placement Transaction Will Provide the Company with Opportunistic Capital
FORT LEE, N.J. - CRB Group, Inc., the parent company of Cross River Bank, today announced the closing of its $106 million private placement of subordinated notes (the “Notes”).
“We are pleased to announce the successful completion of our subordinated debt offering, which will provide us with opportunistic capital to continue our strategic growth plans and to fuel our commitment to our employees, partners, businesses and consumers,” said Gilles Gade, Founder, President and CEO of Cross River. “This offering was oversubscribed, and we appreciate the strong support and positive response of the investment community.”
The Notes have a maturity date of September 1, 2030 and carry a fixed rate of interest of 6.50% for the first five years. Thereafter, the Notes will pay interest at 3-month SOFR plus 638 basis points, payable quarterly in arrears. The Notes include a right of prepayment without penalty on or after September 1, 2025. The subordinated notes have been structured to qualify as Tier 2 capital for regulatory purposes. Kroll Bond Rating Agency assigned an investment rating of BBB- to the Notes.
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