By Devika Patel
Knoxville, Tenn., Dec. 23 – Avidbank Holdings, Inc. settled $22 million private placement of 5% 10-year fixed-to-floating rate subordinated notes (Kroll: BBB-), according to a press release.
Sandler O’Neill + Partners, LP was the agent.
Interest accrues at 5% per year for the first five years. From then onwards, the notes will bear interest at a floating rate equal to SOFR plus 359.5 basis points.
Proceeds were used to repurchase $12 million of outstanding subordinated notes and will also be used for general corporate purposes.
Avidbank Holdings, based in San Jose, Calif., is the parent company of Avidbank, a full-service commercial bank.
| Issuer: | Avidbank Holdings, Inc.
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Amount: | $22 million
|
| Maturity: | Dec. 30, 2029
|
| Coupon: | 5% for the first five years, then SOFR plus 359.5 bps
|
| Call option: | After five years
|
| Agent: | Sandler O’Neill + Partners, LP
|
| Announcement date: | Dec. 23
|
| Rating: | Kroll: BBB-
|
| Distribution: | Private placement
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