By Wendy Van Sickle
Columbus, Ohio, June 23 – First Guaranty Bancshares, Inc. issued a $15 million 10-year subordinated note in a private placement to company director Edgar Ray Smith III on June 21, according to an 8-K filing with the Securities and Exchange Commission.
The note replaces a $15 million 10-year subordinated note that was issued to Smith on Dec. 21, 2015.
The new note is scheduled to mature on June 21, 2032.
The note will bear interest at a floating rate based on the Prime rate as reported by the Wall Street Journal plus 75 basis points.
The company cannot repay the note until after June 21, 2027.
The note is expected to qualify for treatment as tier 2 capital for regulatory capital purposes.
First Guaranty is a bank holding company based in Hammond, La.
| Issuer: | First Guaranty Bancshares, Inc.
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| Amount: | $15 million
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| Issue: | Subordinated notes
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| Maturity: | June 21, 2032
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| Coupon: | Wall Street Journal Prime rate plus 75 bps, payable quarterly
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| Call option: | After June 21, 2027
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| Purchaser: | Company director Edgar Ray Smith III
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| Settlement date: | June 21
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| Distribution: | Private placement
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