By Lisa Kerner
Charlotte, N.C., April 30 – First Bank closed a $22 million private placement of fixed-to-floating-rate subordinated notes.
The notes have a maturity date of May 1, 2025 and carry a fixed rate of 6¾% for the first five years. After that, the notes will pay interest at Libor plus 530 basis points.
According to the bank, the notes include a right of prepayment, without penalty, on or after May 1, 2020.
Proceeds will be used for general corporate purposes including organic growth initiatives, as well as potential M&A opportunities, according to a news release.
Sandler O'Neill + Partners, LP was the placement agent.
First Bank is based in Hamilton, N.J.
| Issuer: | First Bank
|
| Issue: | Subordinated notes
|
| Amount: | $22 million
|
| Coupon: | 6¾% for the first five years, then Libor plus 530 bps
|
| Maturity: | May 1, 2025
|
| Call option: | On or after May 1, 2020
|
| Agent: | Sandler O'Neill + Partners, LP
|
| Distribution: | Private placement
|
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