Preferred Bank will redeem fixed-to-floaters with new notes

Chicago, June 16 – Preferred Bank announced that it will use proceeds from a new debt offering to redeem $100 million of the bank’s fixed-to-floating-rate subordinated debentures originally issued in 2016, according to a press release.

The company will receive net proceeds of $147.65 million from a new offering of subordinated notes to be used to fund the redemption, and then the rest will be used for general corporate purposes.

As a result of the redemption, the bank expects to incur about $614,000 of pre-tax debt extinguishment costs in the second quarter of 2021.

The independent commercial bank is based in Los Angeles.

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