By Lisa Kerner
Charlotte, N.C., June 29 – Northeast Bancorp agreed to sell $15.05 million of 6.75% fixed-to-floating subordinated notes due 2026 to certain institutional accredited investors on Wednesday, according to a form 8-K filed with the Securities and Exchange Commission.
The notes were priced at par and mature on July 1, 2026.
From and including July 1, 2021 to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per year equal to Libor plus 557 bps.
The notes are redeemable, in whole or in part, on or after July 1, 2021 and at any time upon the occurrence of certain events, the filing stated. Any redemption would be at a price equal to 100% of the outstanding principal amount of the notes being redeemed plus any accrued and unpaid interest.
Prior to July 1, 2021, the company may redeem the notes, in whole at any time, or in part from time to time, only under certain limited circumstances.
Proceeds will be used for general corporate purposes, including loan growth, additional liquidity and working capital.
The notes are unsecured, subordinated obligations of the company and rank junior in right to payment to the company’s current and future senior debt.
Sandler O’Neill & Partners, LP was the placement agent.
The bank holding company is based in Lewiston, Maine.
| Issuer: | Northeast Bancorp
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| Issue: | Subordinated notes
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| Amount: | $15.05 million
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| Coupon: | Fixed-to-floating rate; 6.75% to July 1, 2021, then Libor plus 557 bps
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| Maturity: | July 1, 2026
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| Price: | Par
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| Distribution: | Private placement
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| Placement agent: Sandler O’Neill & Partners, LP
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