By Taylor Fox
New York, Oct. 28 – ES Bancshares, Inc. completed a private placement of $14 million of 6% fixed-to-floating rate subordinated notes due Oct. 30, 2030 to certain qualified institutional buyers and accredited investors, according to a news release.
The notes initially bear interest, payable semi-annually, at a fixed annual rate of 6%, until Oct. 30, 2025. Beginning on that date, the interest rate will be rest quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the three-month SOFR plus 579 basis points, payable quarterly.
ES Bancshares may redeem the notes beginning Oct. 30, 2025.
The notes are intended to qualify as tier 2 capital for regulatory capital purposes for the company.
ES Bancshares plans to use the proceeds to repay $7.5 million of outstanding indebtedness, to support organic growth, for general corporate purposes and to fund potential acquisitions.
ES Bancshares is the bank holding company for Empire State Bank, based in New York.
| Issuer: | ES Bancshares, Inc.
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| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $14 million
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| Maturity: | Oct. 30, 2030
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| Coupon: | 6%
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| Trade date: | Oct. 28
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