By Lisa Kerner
Charlotte, N.C., April 22 – Eastern Virginia Bankshares, Inc. privately placed $20 million of fixed-to-floating-rate subordinated notes with institutional accredited investors, according to a news release.
The notes (Kroll: BBB-) mature on May 1, 2025 and bear interest at a fixed rate of 6.5% per year up to but excluding May 1, 2020.
From and including May 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per year equal to Libor plus 502 basis points.
According to Eastern Virginia, it has agreed to take steps to exchange the notes for registered notes having substantially the same terms.
Sandler O'Neill + Partners, LP was the placement agent.
Proceeds will be used to redeem the remaining 9,000 shares outstanding of the company’s fixed-rate cumulative perpetual preferred stock, series A, as well as to enhance its financial flexibility and for general corporate purposes.
The subordinated notes have been structured to qualify as tier 2 capital for regulatory purposes.
Eastern Virginia Bankshares is a bank holding company based in Tappahannock, Va.
| Issuer: | Eastern Virginia Bankshares, Inc.
|
| Issue: | Fixed-to-floating-rate subordinated notes
|
| Amount: | $20 million
|
| Maturity: | May 1, 2025
|
| Coupon: | 6.5% up to but excluding May 1, 2020, then Libor plus 502 bps, reset quarterly
|
| Agent: | Sandler O'Neill + Partners, LP
|
| Settlement date: | April 22
|
| Rating: | Kroll: BBB-
|
| Distribution: | Private placement
|
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