Sun Bancorp Inc. of Vineland, N.J. said billionaire investor Wilbur Ross' private equity firm, Sun's founding Brown family and others will invest $100 million in equity in the bank, news that sent its stock soaring 37% on Thursday.
The depository has posted losses in recent quarters as provisions for loan losses and nonperforming assets have risen from prior-year levels.
Under the deal, the investor group will acquire common and preferred stock for $4 a share, an 11% premium to the common stock's Wednesday close.
The preferred shares will be converted into common stock upon shareholder approval.
Ross' namesake investment firm is acquiring an estimated 25% stake in Sun Bancorp, the holding company for the 70-branch Sun National Bank. Ross has made several mortgage-related investments over the past two years, and controls American Home Mortgage Servicing of Irving, Texas, a top ranked residential servicer/subservicer.
In trading Thursday, Sun's shares were up $1.36 to $4.97.
