OceanFirst Financial Corp. announced its plan to redeem all 57,370 outstanding shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. The redemption is scheduled for May 15, 2025, which is the next dividend payment date for the Series A Preferred Stock. The redemption price will be $1,000 per share, equivalent to $25 per Depositary Share.
This strategic move aligns with the company's balance sheet strategy to optimize its debt and capital structure. Patrick Barrett, Senior Executive Vice President and Chief Financial Officer, stated that strong capital and liquidity levels have positioned the company to pay off liabilities with higher funding costs. The redemption will cease dividend accrual on and after the Redemption Date.
The redemption of the preferred stock is expected to reduce higher-cost capital, thereby enhancing the company's financial efficiency. This action demonstrates OceanFirst's commitment to prudent capital management and improving its overall cost of funds, which is a positive development for investors.
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