Greater Bay Bancorp Announces Completion of Trust Preferred Securities Offering.EAST PALO ALTO, Calif. -- Greater Bay Bancorp (Nasdaq:GBBK), a financial services holding company, announced the completion of a $75 million trust preferred securities private offering on June 14, 2006. The company issued the trust preferred securities through its trust subsidiary, GBB GBB Groningen Biomolecular Sciences and Biotechnology Institute (The Netherlands) GBB Gas Blow Back GBB General Broadband GBB Globe Broadband Capital VIII, to institutional buyers. The trust preferred securities bear a fixed interest rate of 7.064% until June 14, 2011, and a variable rate per annum Per annum Yearly. after that date equal to three-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 1.63%. Interest is payable quarterly in arrears. GBB Capital VIII used the proceeds from the sale of the trust preferred securities to purchase junior subordinated deferrable interest notes of Greater Bay Bancorp, which mature on June 14, 2036. Greater Bay Bancorp intends to 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). for general corporate purposes. Under applicable regulatory guidelines, the company expects that the trust preferred securities will qualify as Tier I Capital. About Greater Bay Bancorp Greater Bay Bancorp, a diversified financial services holding company, provides community banking services in the Greater San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay through Greater Bay Bank, N.A.'s community banking organization, including Bank of Petaluma, Bank of Santa Clara, Bay Area Bank, Bay Bank of Commerce, Coast Commercial Bank, Cupertino National Bank, Golden Gate Bank, Mid-Peninsula Bank, Mt. Diablo National Bank, Peninsula Bank of Commerce and San Jose National Bank. Nationally, Greater Bay Bancorp provides specialized leasing and loan services through its specialty finance group, which includes Matsco, CAPCO CAPCO Certified Capital Company CAPCO Capitol Area CAPCO Consumer Aerosol Products Council CAPCO Capability Package Coordination Officer CAPCO Controlled Access Program Coordinating Office (CIA) CAPCO California Agricultural Pest Control Operators and Greater Bay Capital. ABD ABD n. A candidate for a doctorate who has completed all the requirements for the degree, such as courses and examinations, with the exception of the dissertation. [a(ll) b(ut) d(issertation).] Insurance and Financial Services, the Company's insurance brokerage subsidiary, provides commercial insurance brokerage, employee benefits consulting and risk management solutions to business clients throughout the United States. For additional information and press releases about Greater Bay Bancorp, visit the Company's web site at http://www.gbbk.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This document may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. For a discussion of factors that could cause actual results to differ, please see the publicly available Securities and Exchange Commission filings of Greater Bay Bancorp, including its Annual Report on Form 10-K for the year ended December 31, 2005, and particularly the discussion of risk factors within such documents. |
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