By Lisa Kerner
Charlotte, N.C., Oct. 6 – WashingtonFirst Bankshares, Inc. completed a $25 million private placement of 10-year subordinated notes to institutional investors.
The notes will bear interest at a fixed rate of 6% for the first five years and thereafter will bear a floating interest rate of Libor plus 457 basis points.
Keefe, Bruyette & Woods, Inc. and Sandler O'Neill + Partners, LP were the placement agents.
The notes are callable at par after five years.
A portion of the proceeds were used to pay off the company’s remaining $8.9 million of preferred stock issued in connection with its participation in the Small Business Lending Fund. The dividend rate on the preferred stock, which had been 1% since the preferred stock was issued in 2011, was scheduled to increase to 9% in February, according to a news release.
The remaining proceeds were used as equity capital by subsidiary WashingtonFirst Bank to redeem $2.5 million of its outstanding 8% subordinated notes maturing in 2021.
Reston, Va.-based WashingtonFirst Bankshares is the holding company for WashingtonFirst Bank.
| Issuer: | WashingtonFirst Bankshares, Inc.
|
| Issue: | Subordinated notes
|
| Amount: | $25 million
|
| Coupon: | 6% for the first five years, then Libor plus 457 bps
|
| Maturity: | Oct. 15, 2025
|
| Price: | Par
|
| Call option: | At par beginning Oct. 15, 2020
|
| Agents: | Keefe, Bruyette & Woods, Inc. and Sandler O'Neill + Partners, LP
|
| Settlement date: | Oct. 5
|
| Distribution: | Private placement
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
