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SOURCE Sun Bancorp, Inc.
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., visit www.sunnationalbank.com.
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.
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