Investment Banking - Parke Bancorp, Inc.

Transactions | Banking

Client: Parke Bancorp, Inc.
Industry: Banking
Transaction Type: Preferred Stock Offering
Role: Sole Placement Agent

  • Parke Bancorp, Inc. (NASDAQ:PKBK) is the holding company for Sewell, New Jersey-based Parke Bank.
  • As of September 30, 2013, the company had $747 million in assets,  with a branch office in Northfield, NJ, two branch offices in Washington Township, NJ, a branch office in Galloway Township, NJ, and a branch in center city Philadelphia.
  • The company completed a private placement of newly designated 6.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series B, with liquidation preference of $1,000 per share.
  • The company generated gross proceeds of $20 million from the offering.
  • Parke intends to use the net proceeds of the sale of the convertible preferred stock for general corporate purposes, which may include the redemption of part or all of the company’s outstanding Fixed Rate Cumulative Perpetual Preferred Shares, Series A, issued on January 30, 2009, in conjunction with the company’s participation in Treasury’s Capital Purchase Program.
  • Each share is convertible into 93.9496 shares of common stock of the company, based on a conversion price of $10.6440 per share, subject to the requirement that in no event may shares be converted into more than 19.9% of the company’s outstanding common stock unless and until shareholders of the company approve the private placement.
  • Boenning acted as sole placement agent in connection with the offering.