Peapack-Gladstone Financial Corporation (NASDAQ: PGC) has announced a significant financial move with a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners. This commitment includes an initial private placement of $30 million in non-cumulative perpetual convertible preferred stock, with the potential to issue an additional $20 million by the end of 2027. The preferred stock carries a dividend rate of 6.00% per annum and is non-callable for the first five years, after which it may be redeemed under specific terms. The issuance is expected to qualify as Tier 1 capital, subject to regulatory requirements. The proceeds from this offering will be utilized for general corporate purposes, including supporting growth, investments, and refinancing existing debt. Douglas L. Kennedy, President and CEO, expressed optimism about the partnership with Strategic Value Bank Partners, highlighting the alignment of long-term strategies and the positive results from recent expansions in the New York metropolitan market. This capital raise is seen as a strategic move to maintain capital levels while continuing to execute growth plans. The preferred stock is convertible into common stock after five years, providing additional flexibility for investors. The transaction is expected to enhance the company's financial stability and support its ongoing growth initiatives.

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