By Wendy Van Sickle
Columbus, Ohio, Nov. 30 – Civista Bancshares, Inc. entered a note purchase agreement for the private placement of $75 million 3.25% fixed-to-floating rate subordinated notes due 2031, according to an 8-K filing with the Securities and Exchange Commission.
The notes bear interest at 3.25% for the first five years. After that, interest will reset quarterly at SOFR plus 219 basis points.
The notes are callable at par in whole or in part after five years or in whole at any time upon certain specified events.
The notes have been structured to qualify as tier 2 capital for regulatory purposes.
Proceeds from the placement will be used for general corporate purposes, which may include organic growth, share repurchases and strategic initiatives, such as acquisitions.
The financial holding company has headquarters in Sandusky, Ohio.
| Issuer: | Civista Bancshares, Inc.
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Amount: | $75 million
|
| Maturity: | Dec. 31, 2031
|
| Coupon: | 3.25% for five years, then resets quarterly to SOFR plus 219 bps
|
| Issue price: | Par
|
| Call: | In whole or in part after five years, or in whole at any time upon certain specified events
|
| Settlement date: | Nov. 30
|
| Distribution: | Private placement
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