BCB Bancorp slips after $85 mln stock sale for revamp
BUZZ-BCB Bancorp slips after $85 mln stock sale for revamp ** Shares of community bank BCB Bancorp BCBP.O down 2.4% at $8.05 premarket after follow-on priced to help improve its asset quality
** Bayonne, New Jersey-based BCBP late Weds sold 11 mln shares for $85.25 mln gross proceeds with Piper Sandler as sole bookrunner
** Offering price of $7.75 represents 6.1% discount to stock's last close
** BCBP late Weds unveiled $75 mln offering for general purposes, including disposition of potential problem loans, reducing debt
** The bank looking to sell about $210 mln of problem loans, spanning commercial and multifamily real estate, commercial and industrial and construction segments
** CEO Thomas O'Brien, who took the bank's helm in Jun, said the last three months had been spent reviewing legacy credit challenges and developing plans to address them
** It projected provisions for credit losses in Q3 in range of $112-$120 mln and net loss of $126.2-$136.1 mln
** With ~18.1 mln shares outstanding, BCBP has roughly $150 mln market cap
** At Weds close, stock had fallen ~26% over the past three months, leaving it up 2% YTD
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))