The media published information according to which Flushing Financial, a New York-based commercial real estate lender, is currently seeking to raise $70 million.
The mentioned lender needs funds to shore up its capital. Chief executive officer of Flushing Financial John Buran has informed potential investors of the intention to sell low-yield bonds and loans backed by commercial real estate, including multifamily buildings. These actions will generate losses and will require the sale of fresh stock. Relevant information was also published by the media with reference to insiders.
The bankers who are currently working on the deal have yet to finalize pricing. The media, citing insiders, reported that the corresponding figure will likely range from $15 to $15.5 per equity. It is worth noting that in this case, it is observed that the reading is below the $17.25 level the stock closed at on Thursday, December 12th.
Initially, the bank declined to comment on the information published by the media. However, the lender then issued a press release confirming the sale of equities.
It is worth noting that in the United States, banks with commercial real estate exposure faced difficulties after the Federal Reserve began intensively raising interest rates in 2022. Against the background of the corresponding monetary policy strategy of the US financial regulator, unrealized losses on the lenders’ balance sheets were formed. For example, New York Community Bank was forced to raise capital in the current year because the value of its shares was on a downward trajectory amid concerns about its portfolio of commercial loans.
As we have reported earlier, Digital Bank Zopa Raises $85 Million.
