Provident Financial Services (ticker: PFS) closed a $175 million public offering of subordinated notes on August 24, due September 2036, with a fixed 6.50% interest rate running through 2031 before flipping to a floating rate (expected to be three-month SOFR plus 239 basis points). Most of the proceeds will go toward retiring two older bond issues — $150 million of 2.875% subordinated notes due 2031 and $20 million of floating-rate junior subordinated notes due 2033 — with the remainder earmarked for general corporate purposes. Piper Sandler and KBW led the underwriting, and the company can start redeeming the notes at par beginning September 1, 2031.
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