By Lisa Kerner
Charlotte, N.C., Jan. 4 – AmeriServ Financial, Inc. privately placed $7.65 million of 6.5% fixed-rate subordinated notes due Dec. 31, 2025, with certain accredited investors.
Proceeds, along with cash on hand, will be used to redeem all $21 million of Ameriserv’s issued and outstanding SBLF preferred stock prior to the upcoming dividend rate increase to 9%, from 1%, in February 2016, according to a news release.
The debt has been structured to qualify as Tier 2 capital under the Federal Reserve's capital guidelines and will be non-callable for five years.
Griffin Financial Group, LLC acted as financial advisor and placement agent.
Based in Johnstown, Pa., AmeriServ is the holding company for AmeriServ Financial Bank and AmeriServ Trust & Financial Services Co.
| Issuer: | AmeriServ Financial, Inc.
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| Issue: | Fixed-rate subordinated notes
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| Amount: | $7.65 million
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| Coupon: | 6.5%
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| Maturity: | Dec. 31, 2025
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| Distribution: | Private placement
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| Agent: | Griffin Financial Group, LLC
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