10-year subordinated promissory notes sold to fund corporate purposes
By Devika Patel
Knoxville, Tenn., July 7 – MVB Financial Corp. raised $29.4 million in a private placement of convertible subordinated promissory notes on June 30, according to an 8-K filed Monday with the Securities and Exchange Commission.
The notes mature in 10 years and will convert to common shares at $16.00 per share. The conversion price is identical to the June 27 closing share price. The notes may be redeemed at par or prepaid.
The notes accrue interest at 7% or 7.5%, depending on how much principal each investor purchased. After five years, investors may elect to continue to receive the fixed rate or a floating rate of Libor plus 500 basis points, up to a maximum rate of 9%.
Proceeds will be used for general corporate purposes, including strategic and organic growth opportunities.
Based in Fairmont, Va., MVB is a bank holding company.
| Issuer: | MVB Financial Corp.
|
| Issue: | Convertible subordinated promissory notes
|
| Amount: | $29.4 million
|
| Maturity: | 10 years
|
| Coupon: | 7%, 7.5%
|
| Conversion price: | $16.00
|
| Conversion premium: | 21.07%
|
| Call: | At par
|
| Warrants: | No
|
| Settlement date: | June 30
|
| Stock symbol: | OTCBB: MVBF
|
| Stock price: | $16.00 at close June 27
|
| Market capitalization: | $125.43 million
|
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