By Devika Patel
Knoxville, Tenn., Aug. 2 – Farmers & Merchants Bancorp, Inc. settled a $35 million private placement of 3.25% 10-year fixed-to-floating rate subordinated notes on July 30, according to an 8-K filed with the Securities and Exchange Commission and a press release.
Boenning & Scattergood, Inc. was the agent.
Interest accrues at 3.25% per year for the first five years. From then onwards, the notes will bear interest at a floating rate equal to SOFR plus 263 basis points.
The notes, which were sold at par, are redeemable at par plus interest after five years.
The notes will qualify as tier 2 capital for regulatory capital purposes.
Proceeds will be used for general corporate purposes, including to support growth initiatives at the company’s commercial bank subsidiary, Farmers & Merchants State Bank.
The community bank is based in Archbold, Ohio.
| Issuer: | Farmers & Merchants Bancorp, Inc.
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Amount: | $35 million
|
| Maturity: | July 30, 2031
|
| Coupon: | 3.25% until July 30, 2026, then at SOFR plus 263 bps
|
| Price: | Par
|
| Call: | At par plus interest on or after July 30, 2026
|
| Agent: | Boenning & Scattergood, Inc.
|
| Settlement date: | July 30
|
| Distribution: | Regulation D
|
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