Provident Financial Services, Inc. announced the pricing of its offering of $175 million of 6.50% Fixed-to-Floating Rate Subordinated Notes due 2036 in a registered public offering. The notes will initially bear interest at 6.50% per annum from August 24, 2026 until September 1, 2031, with interest payable semiannually, and thereafter reset quarterly to a floating rate equal to Three-Month Term SOFR plus 239 basis points. The company may redeem the notes on September 1, 2031 or any interest payment date thereafter at 100% of principal plus accrued interest, and the notes mature on September 1, 2036 if not earlier redeemed. Net proceeds will be used to repay $150 million of its outstanding 2.875% Fixed-to-Floating Rate Subordinated Notes due 2031 and $20 million of its variable rate Junior Subordinated Notes due 2033, with the remainder for general corporate purposes. The notes are intended to qualify as Tier 2 capital for regulatory purposes, and Piper Sandler and Keefe, Bruyette & Woods are acting as joint book-running managers.
Provident Financial Services IncPricing $175M subordinated notes at 6.50% to refinance lower-rate debt increases interest expense.
