Chicago, Aug. 17 – Five Star Bancorp, the holding company for Five Star Bank, completed a private placement for $75 million of fixed-to-floating rate subordinated notes with a 10-year tenor, according to a press release and an 8-K filing with the Securities and Exchange Commission.
The interest is 6% for the first five years then resets quarterly thereafter to SOFR plus 329 basis points.
The notes are redeemable starting on the fifth anniversary and then on each interest payment date going forward.
Keefe, Bruyette & Woods is the lead placement agent, and D.A. Davidson & Co. and Stephens Inc. are the co-placement agents.
The notes were sold via Section 4(a)(2) and Regulation D. The notes qualify as tier 2 capital.
Proceeds will be used for general corporate purposes, including to redeem the company’s existing subordinated notes.
The bank holding company has headquarters in Rancho Cordova, Calif.
| Issuer: | Five Star Bancorp
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| Amount: | $75 million
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| Issue: | Fixed-to-floating rate subordinated notes
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| Maturity: | Sept. 1, 2032
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| Placement agent: | Keefe, Bruyette & Woods
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| Co-placement agents: | D.A. Davidson & Co. and Stephens Inc.
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| Counsel to issuer: | Covington & Burling LLP
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| Counsel to underwriters: | Sheppard Mullin
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| Coupon: | 6% starting rate; resets after five years to SOFR plus 329 bps with quarterly resets thereafter
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| Call features: | After five years and then on each interest payment date going forward
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| Settlement date: | Aug. 17
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| Distribution: | Private placement
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