Bridge Capital Holdings (NASDAQ: BBNK) (the “Company”), whose subsidiary is Bridge Bank, National Association, announced today the closing of the sale of $30.0 million in common stock to a group of institutional investors in a private placement transaction.
“This additional capital differentiates and further enhances Bridge Bank’s strategic advantage in the commercial business banking market. We have the necessary capital, liquidity, and strategic discipline to support the credit demands of businesses looking to grow,” said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. “As Silicon Valley gradually exits the current economic cycle, we have established a firm foundation to support accelerated growth of our company as the economy gains sustained, meaningful momentum.”
The investors in the private placement purchased 3,508,771 shares of common stock at a price per share of $8.55. The price per share in the private placement was equal to the Nasdaq closing bid price of the Company’s common stock on November 18, 2010.
“We are pleased at the level of interest we received from the institutional investor community for this private placement transaction,” said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Capital Holdings. “We believe this reflects a strong endorsement of our ability to profitably grow the franchise in the future. We expect to use the proceeds from the private placement for general corporate purposes, which may include providing capital to support the strength and growth of Bridge Capital Holdings, pursuing other strategic business opportunities in our markets, and ensuring the Company’s ability to redeem the preferred stock issued to the U.S. Treasury under the TARP Capital Purchase Program, upon receipt of required regulatory approvals.”The transaction discussed above involves the sale of securities in private transactions that will not be registered under the Securities Act of 1933, as amended, and will be subject to the resale restrictions under that Act. The Company has agreed to prepare and file a registration statement with the Securities and Exchange Commission to provide for the resale of the common shares issued in the private placement. Such securities may not be offered or sold in the United States absent registration or an applicable exemption from registration. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.