By Devika Patel
Knoxville, Tenn., April 8 – Old Second Bancorp, Inc. issued $60 million of 10-year fixed-to-floating rate subordinated notes in a private placement on April 6, according to an 8-K filed with the Securities and Exchange Commission.
Keefe, Bruyette & Woods, Inc. was the agent.
The notes bear interest at a rate of 3.5% per year to but excluding April 15, 2026, payable semiannually in arrears.
From and including April 15, 2026 to the maturity date or any early redemption date, the interest rate on the notes will be reset quarterly to an interest rate per year equal to SOFR plus 273 basis points, payable quarterly in arrears.
Proceeds will be used for general corporate purposes, which may include senior debt redemptions, common stock repurchases and acquisitions.
Old Second is an Aurora, Ill., bank holding company.
| Issuer: | Old Second Bancorp, Inc.
|
| Issue: | Subordinated notes
|
| Amount: | $60 million
|
| Maturity: | April 15, 2031
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| Coupon: | Initially 3.5%; beginning April 15, 2026, resets to SOFR plus 273 bps
|
| Call: | Redeemable at par on April 15, 2026 or on any interest payment date after that
|
| Agent: | Keefe, Bruyette & Woods, Inc.
|
| Settlement date: | April 6
|
| Distribution: | Private placement
|
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