By Lisa Kerner
Charlotte, N.C., Sept. 26 - Berkshire Hills Bancorp, Inc. provided details on its previously announced private placement of $75 million of 15-year fixed-to-floating-rate subordinated notes in an 8-K filing with the Securities and Exchange Commission.
The interest rate is fixed at 6.875% and interest is payable semiannually for the first 10 years of the life of the notes. Beginning Sept. 28, 2022, the interest rate will be equal to Libor plus 511.3 basis points and interest will be payable quarterly.
The notes become callable quarterly at par after 10 years. They qualify as tier 2 capital.
The placement agent is U.S. Bancorp Investments, Inc.
U.S. Bank NA is the issuing and paying agent.
As previously reported, Berkshire expects to use the majority of the proceeds to fund the cash portion of its pending acquisition of Beacon Federal Bancorp, Inc., which is expected to close in October. The remainder will be used for other corporate purposes.
Berkshire Hills Bancorp is based in Pittsfield, Mass., and is the parent of Berkshire Bank. Beacon Federal Bancorp offers banking and financial services through its bank subsidiary, Beacon Federal, and is based in East Syracuse, N.Y.
| Issuer: | Berkshire Hills Bancorp, Inc.
|
| Issue: | Fixed-to-floating-rate subordinated notes
|
| Amount: | $75 million
|
| Maturity: | Sept. 28, 2027
|
| Coupon: | 6.875% and payable semiannually for 10 years, then Libor plus 511.3 bps and payable quarterly
|
| Price: | Par
|
| Call option: | At par quarterly starting Sept. 28, 2022
|
| Placement agent: | U.S. Bancorp Investments, Inc.
|
| Pricing date: | Sept. 20
|
| Settlement date: | Sept. 28
|
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