Republic First Bancorp, the parent company of Republic Bank, and George E. Norcross III, Gregory B. Braca, Philip A. Norcross, Lexie Norcross, other Norcross family members and affiliates (collectively, the Norcross Braca Group), signed a securities purchase agreement to effectuate a $35 million investment by the Norcross Braca Group.
As part of the agreement, the Republic’s board of directors will be reconstituted, with former TD Bank U.S. CEO Gregory B. Braca and two other highly individuals joining as directors and Philip A. Norcross becoming the chair. Upon closing of the new investment, which is subject to regulatory approval and other conditions related to Republic, the remainder of the previously announced $75 million to $100 million capital raise will commence.
“As we said when we first announced we had taken a stake in Republic First more than 18 months ago, we believe that with proper board leadership and a focus on improving operations, the company can provide great service to its customers and depositors as well as value to its shareholders,” George E. Norcross III said. “This investment and new leadership on the board is the next step of what will be the new Republic First.”
“This is an important milestone to strengthen our balance sheet and improve our operations,” Thomas X. Geisel, president and CEO of Republic, said. “We look forward to having the benefit of Phil’s and Greg’s expertise in the boardroom as we work together to enhance value for all stakeholders and chart Republic First’s future.”
Upon the closing of the securities purchase agreement, the Republic’s board will consist of seven members: incumbents Geisel, Benjamin C. Duster IV and Peter B. Bartholow, as well as Philip Norcross, Gregor Braca, and two new independent directors. Philip Norcross will be chairman of the reconstituted Board. Legacy directors Andrew B. Cohen, Harry D. Madonna, Harris Wildstein and Lisa Jacobs will all depart the board.
Squire Patton Boggs and Vinson & Elkins are serving as legal advisors to Republic, and Keefe, Bruyette & Woods and Raymond James & Associates are serving as financial advisors. Sullivan & Cromwell and Ballard Spahr are serving as legal advisors to the Norcross Braca Group.
