Valley National drops on pricing $400 mln stock offering

Valley National Bancorp

08/11/2024 12:12

** Shares of Valley National Bancorp  VLY.O  down 5.2% premarket
to $9.53 after equity raise
** Regional lender late Thurs announced pricing ~42.8 mln share
offering at $9.35 for $400 mln gross raise with JP Morgan sole
bookrunner 
    ** Offering price represents 7% discount to last sale
    ** Co plans to use net proceeds for general purposes and
investments in subsidiary Valley National Bank as regulatory
capital
    ** VLY has ~509.25 mln shares outstanding for ~$5.1 bln
market cap
** Two weeks ago, VLY posted y/y decline in net income in Q3,
saying provisions elevated due to higher reserves for commercial
real estate loans and commercial and industrial loan growth
    ** Through Thurs, shares have rallied ~55% from their 2024
lows hit in Jun, leaving them down 7.5% YTD

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))