Sun Bancorp Inc. in Vineland, N.J., should have an additional $70 million of capital in its coffers this week, although the new money will come at a discount.
The $3.4 billion-asset company said late Thursday that it would sell 25 million shares at $3 a share, or a 22.6% discount to the company's closing price on Monday, when the raise was announced. Sun said in a press release that it expects net proceeds of $70 million.
Sun's three largest shareholders and certain officers and directors, including W.L. Ross & Co., have agreed to buy about 40% of the shares to maintain pre-existing ownership percentages.
Sun said it has earmarked funds for uses such as absorbing losses from loan sales or acquisitions.