By William Gullotti
Buffalo, N.Y., Nov. 18 – Freedom Financial Holdings, Inc., the holding company for Freedom Bank of Virginia, announced the completion of a private placement of $20 million 3.5% fixed-to-floating rate subordinated notes due 2031 (Egan Jones: BBB), according to a press release on Thursday.
The notes bear interest at 3.5% for the first five years. After that, interest will reset quarterly at SOFR plus 244 basis points.
The notes are callable at par in whole or in part after five years or in whole at any time upon certain specified events.
The notes have been structured to qualify as tier 2 capital for regulatory purposes.
Proceeds from the placement will be used for general corporate purposes, including continued growth and maintenance of bank level regulatory capital ratios.
Janney Montgomery Scott LLC was placement agent for the offering.
Troutman Pepper Hamilton Sanders LLP served as legal counsel to the company, and Alston + Bird LLP was legal counsel to the placement agent.
Freedom Bank is based in Fairfax, Va.
| Issuer: | Freedom Financial Holdings, Inc.
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Amount: | $20 million
|
| Maturity: | Dec. 1, 2031
|
| Coupon: | 3.5% for five years, then resets quarterly to SOFR plus 244 bps with a 0% floor for SOFR
|
| Spread: | Treasuries plus 194 bps
|
| Call: | In whole or in part after five years, or in whole at any time upon certain specified events
|
| Placement agent: | Janney Montgomery Scott LLC
|
| Counsel: | Troutman Pepper Hamilton Sanders LLP (counsel to the company); Alston + Bird LLP (counsel to the placement agent)
|
| Settlement date: | Nov. 12
|
| Ratings: | Egan Jones: BBB
|
| Distribution: | Private placement
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