By Wendy Van Sickle
Columbus, Ohio, Aug. 17 – California Bancorp settled a $35 million private placement of 3.5% fixed-to-floating rate subordinated notes due 2031, according to a press release.
Interest accrues at 3.5% per year until Sept. 1, 2026. From then onwards, the notes will reset quarterly at a variable rate equal to the then current three-month SOFR plus 286 basis points.
The notes will be callable after five years.
Proceeds will be used for general corporate purposes, including, but not limited to, the repayment of $5 million of outstanding debt under a term loan.
California Bancorp is based in Lafayette, Calif.
| Issuer: | California Bancorp
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| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $35 million
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| Maturity: | Sept. 1, 2031
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| Coupon: | 3.5% until Sept. 1, 2026, then at SOFR plus 286 bps
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| Call: | At par beginning on Sept. 1, 2026
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| Announcement date: | Aug. 17
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| Distribution: | Private placement
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