Arent Fox Advises Congressional Bancshares, Inc. in $345 Million Capital Raise
The investors in the capital rise include affiliates of Centerbridge Partners L.P., Gallatin Point Capital LLC, Bayview Asset Management LLC, and funds and accounts managed by BlackRock, Inc. Representatives of each firm will join the Board of Congressional as will Donald Kohn, former Vice Chairman of the Board of Governors of the Federal Reserve System.
Arent Fox served as legal counsel to Congressional Bancshares, Inc. The team from AF included David M. Martin, Amal U. Dave, Jeffrey E. Jordan, and Bryce W. Donohue.
“We expect that this capital raise will enable up to $10 Billion of new loan originations across our market-leading Health Care, Lender, and Leveraged Finance businesses and our recently launched Sustainable Finance business. We look forward to serving our customers with broader loan capabilities, focused financial solutions, and an enhanced digital banking experience,” said Don Cole, Chief Executive Officer of Congressional Bank.
The proceeds from the private placement will be used to further capitalize Congressional Bank and a new, wholly-owned specialty finance subsidiary of Congressional. The capital raise will allow Congressional Bank to uniquely integrate bank lending, non-bank lending, and technology-enabled banking services and product offerings. Congressional Bank, with $3.45 Billion of owned and managed assets, is headquartered in Chevy Chase, Maryland, and services the Washington, DC metro region from its network of branches in Maryland, Virginia, and the District of Columbia. Its Health Care, Specialty Lending, and Sustainable Finance divisions provide nationwide lending products including customized real estate loans and lines of credit.
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Arent Fox’s Corporate & Securities practice advises clients on capital markets transactions that range from highly complex mergers involving multinational companies to smaller deals for startups. The majority of the group’s transactional work involves deals in the $25 million to $500 million range. The firm also specializes in joint ventures, private and public offerings of equity and debt, and securities compliance, and corporate governance.