By Devika Patel
Knoxville, Tenn., Feb. 12 – First Mutual Holding Co. said it has settled a $10 million private placement of 5.5% fixed-to-floating rate subordinated notes due 2028. Sandler O’Neill + Partners, LP was the agent for the notes.
Interest accrues at 5.5% per year for the first five years. From then onwards, the notes will bear interest at a floating rate equal to Libor plus 294 basis points and will reset quarterly.
Proceeds will be used for general corporate purposes, including improving the holding company’s liquidity position and providing capital to the company’s bank subsidiary.
The no-stock mutual holding company for First Federal Savings and Loan Association of Lakewood and First Mutual Bank, FSB is based in Lakewood, Ohio.
| Issuer: | First Mutual Holding Co.
|
| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $10 million
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| Maturity: | 2028
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| Coupon: | 5.5% for first five years, then at Libor plus 294 bps
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| Agent: | Sandler O’Neill + Partners, LP
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| Settlement date: | Feb. 12
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| Distribution: | Private placement
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