Private placements emerge from Artesian, Southern National Bancorp, Randall & Quilter

Kansas City, Kan., Jan. 20 – Private placement activity picked up on Friday with new supply coming from Artesian Resources Corp., Southern National Bancorp of Virginia, Inc. and Randall & Quilter Investment Holdings Ltd.

Artesian Resources’ principal subsidiary, Artesian Water Co., Inc., agreed to issue a $40 million first mortgage bond, series T, due Dec. 20, 2036 to CoBank, ACB. The companies entered into a bond purchase agreement on Jan. 18, according to an 8-K filing with the Securities and Exchange Commission.

The bond carries an annual interest rate of 4.24%. Interest is payable on June 30 and Dec. 31 of each year and at maturity.

The bond is conditionally putable at par plus a make-whole amount.

Proceeds will be used to prepay two existing first mortgage bonds: series O, principal amount $20 million with interest rate of 8.17% and related prepayment costs of $4.5 million; and series Q, principal amount $15.4 million with interest rate of 4.75%.

Artesian is a water utility based in Newark, Del.

Southern National Bancorp of Virginia closed a $27 million sale of fixed-to-floating rate subordinated notes due 2027, according to a press release.

The notes will bear interest at 5 7/8% until Jan. 31, 2022 when interest will become Libor plus 395 basis points.

The company plans to use proceeds for general corporate purposes, including contributing capital to its bank subsidiary to support continued growth.

The bank holding company is based in McLean, Va.

Randall & Quilter Investment Holdings placed $20 million of floating-rate subordinated notes due December 2023 via R&Q Re (Bermuda) Ltd., the group's class 3A insurer, according to a press release.

Hamilton, Bermuda-based Randall & Quilter is focused on insurance investments and services and underwriting management.

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