Eagle Bancorp launches $55 million subordinated notes due 2024

By Stephanie N. Rotondo

Phoenix, July 29 – Eagle Bancorp Inc. is offering $55 million of subordinated notes due Sept. 1, 2024, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Sandler O’Neill + Partners LP is the bookrunner.

Interest will be payable on the first of March and September, beginning March 1, 2015. The company can redeem the notes in the event of a tax law change, a regulatory capital treatment change or if the company is required to register as an investment company.

The redemption price is par plus accrued interest.

The notes will not be listed on any exchange.

Proceeds will be used to fund the cash consideration portion of its merger with Virginia Heritage and for general corporate purposes. If the merger does not go through, the company will use the funds to redeem its 8.5% subordinated notes due 2021 and its series B noncumulative preferred stock issued to the U.S. Department of the Treasury.

Eagle Bancorp is a Bethesda, Md.-based bank holding company.

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