FOR IMMEDIATE RELEASE
August 16, 2016
Capital Bank Contact:
David J. Hanrahan
Capital Bank Contact:
David J. Hanrahan
Shaking hands are Dennis W. Palmer, Executive Director of the Landis Sewerage Authority (on the right) and David J. Hanrahan, President and CEO of Capital Bank of New Jersey (on the left)
Landis Sewerage Authority and Capital Bank Close $25 Million Bond Issue
Vineland, NJ (8/16/2016) – The Landis Sewerage Authority (LSA) and Capital Bank of New Jersey (Capital Bank) jointly announced that last week they closed on a new $25 million bond issue.
The new financing, representing the first borrowing by the LSA in 23 years, will provide funding for upgrades and improvement to its wastewater treatment plant and collection system.
Dennis W. Palmer, Executive Director of the LSA, commented, “Instead of going to the New York bond market, we wanted to utilize local borrowing with local banks to keep the money in the community. It also had the effect of a much lower issuance cost for these necessary and prudent environmental infrastructure improvements, therefore a savings was realized for our customers.”
He continued, “This overall project is to improve and upgrade our facilities, reduce energy consumption, to have the capacity and infrastructure in place out to the year 2040 to match the City of Vineland Master Plan and our NJDEP planning documents. Capital Bank has been of great service helping us meet these needs.”
This $25 million financing is the single-largest transaction ever arranged by Capital Bank.
David J. Hanrahan, the bank’s president and CEO, said “I’ve known Dennis for ten years – he and I are both members of the Vineland Rotary Club – and he and his team run an excellent operation. We’re proud to have the LSA as a customer of Capital Bank. And it’s especially gratifying to lend money that will go directly to improving local infrastructure.”
David R. Kotok, Chairman and CIO of Cumberland Advisors and longtime financial advisor to the LSA, commented “We were able to save money for the LSA with an unusual bond structure, albeit complex. It allowed community banks to participate and meet their business and investment needs while achieving a low cost financing for LSA. Sometimes all sides can win. This was one of those times.”
Because of the bond’s size, Capital Bank arranged participations in the financing with area institutions, including Century Savings Bank, The Bryn Mawr Trust Company, Haddon Savings Bank, and 1st Colonial Community Bank.
Joseph F. Rehm, Capital Bank’s Chief Lending Officer, noted “We’re grateful to the banks who participated in this transaction with us. We couldn’t have done it without them.”
Christopher B. Langhart of McManimon, Scotland & Baumann, LLC represented the LSA as bond counsel in this transaction. He commented “This closing was the culmination of an innovative and complex public-private financing. The reduced fees and proposed improvements to the LSA should serve to benefit the ratepayers of the Authority for years to come.”
Capital Bank was represented in the transaction by David A. Weinstein of Archer & Greiner, P.C.
The LSA was founded in 1946 and provides wastewater collection and treatment services to more than 12,000 customers in Vineland. Its Commissioners are Thomas J. Merighi, Jr. (Chairman), Carlos Villar, G. Steven Errickson, Joseph J. Reuben and Perry D. Barse. For more information about the LSA, please visit www.landissewerageauthority.com.
Capital Bank is a $400 million community bank with four locations - two in Vineland, one in Woodbury Heights, and one in Hammonton. In addition to Hanrahan, the bank’s Board of Directors is comprised of Dominic J. Romano, CPA (Chairman), John J. DiDonato, William J. Hallissey, Harry E. Hearing, CPA, Daniel R. Kuhar, Patricia Pilone, Salvatore A. Pipitone, and George H. Stanger, Jr., A.J.S.C. (Ret.). For more information about Capital Bank, please visit www.capitalbanknj.com.