Commerce Bancorp announces closing of $57.5 million in 8 3/4% Trust Capital Securities.CHERRY HILL Cherry Hill, township (1990 pop. 69,319), Camden co., W central N.J.; name was changed from Delaware township to Cherry Hill in 1961. Largely residential, Cherry Hill has been marked by great development and housing growth, especially since the 1970s. , N.J.--(BUSINESS WIRE)--June 10, 1997--Commerce Bancorp Inc. (NYSE NYSE See: New York Stock Exchange Symbol: CBH CBH cutaneous basophil hypersensitivity. ) announced today that its newly-formed Delaware business trust subsidiary, Commerce Capital Trust I, has completed an initial public offering of 2,300,000, 8 3/4% Trust Capital Securities, at an offering price of $25 per Capital Security through managing underwriters, Wheat First Butcher Singer and Janney Montgomery Scott “Scotty” redirects here. For the reggae singer, see Scotty (musician). Montgomery Scott, or "Scotty", is a character in the original Star Trek series and the films which followed. He was played by the late Irish-Canadian actor James Montgomery Doohan. Inc. The offering includes the full exercise of an option by the underwriters to purchase $7,500,000 aggregate liquidation amount of Trust Capital Securities to cover overallotments. Commerce Bancorp will use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the $57.5 million offering for general corporate purposes, which may include contributions to its subsidiary banks to fund their operations, the financing of one or more future acquisitions, repayment of indebtedness of the company or of its subsidiary banks, investments in or extensions of credit to its subsidiaries, and the repurchase of shares of the company's outstanding common stock. Application will be made to have the Capital Securities approved for quotation on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "CBHPrT." Commerce Bancorp Inc. is a $3.5 billion multi-bank holding company that operates 68 branch offices in New Jersey and Southeastern Pennsylvania. The company is required by the Federal Reserve to maintain certain levels of capital for bank regulatory purposes. The proceeds from the sale of the Capital Securities are expected to qualify as Tier I or core capital with respect to the company under the risk-based capital guidelines established by the Federal Reserve. The pro-forma effect of the sale of the Capital Securities would be to increase the company's total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. to $287.8 million at March 31, 1997, increase the company's Leverage Ratio to approximately 8.21% and increase the company's Tier I Capital to approximately 15.60%. CONTACT: Commerce Bancorp, Cherry Hill Vernon W. Hill II, Chairman/President, or C. Edward Jordan Jr., Executive VP, 609/751-9000 |
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