By Wendy Van Sickle
Columbus, Ohio, April 3 – First Guaranty Bancshares, Inc. issued a $30 million subordinated note to Smith & Tate Investment, LLC, a company controlled by Edgar Ray Smith III, a director of the company, in a private placement on March 28, according to an 8-K filed with the Securities and Exchange Commission.
The note has a 10-year term and bears interest at a floating rate based on the prime rate as reported by the Wall Street Journal plus 75 basis points. It is scheduled to mature on March 28, 2034.
The company cannot repay the note until after March 28, 2029.
The note is an unsecured and subordinated obligation of the company and ranks junior in right of payment to any senior indebtedness and obligations to general and secured creditors.
It 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: | $30 million
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| Issue: | Subordinated note
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| Maturity: | March 28, 2034
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| Coupon: | WSJ prime rate plus 75 bps
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| Call option: | After March 28, 2029
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| Purchaser: | Smith & Tate Investment, LLC, a company controlled by First Guaranty director Edgar Ray Smith III
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| Settlement date: | March 28
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| Distribution: | Private placement
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