Capital raise to pay off debt for California BanCorp

California BanCorp in Oakland has raised $25 million through a private common stock offering.

The proceeds will be go toward paying off $11.5 million of holding company capital loans and other general corporate purposes, the $909 million-asset California BanCorp said Thursday. The company sold roughly 1.2 million shares through the private placement.

“We are very pleased with the outcome of our private placement, which generated broad based support from high-quality investors,” Steve Shelton, California BanCorp's president and CEO, said in a press release. “The success of this capital raise reflects the strength of our Bank, and the increased capital base supports our strategic plan and growth initiatives.”

Keefe, Bruyette & Woods served as the lead placement agent. Hovde Group was the co-placement agent. Stinson Leonard Street served as the company’s legal adviser, while Sheppard Mullin Richter & Hampton was the placement agents’ counsel.

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