By Marisa Wong
Morgantown, W.Va., Dec. 23 – HomeTown Bankshares Corp. issued $7.5 million of 6.75% fixed-to-floating subordinated notes due 2025 through a private placement to institutional accredited investors on Dec. 18, according to an 8-K filing with the Securities and Exchange Commission.
The notes mature on Dec. 30, 2025 and bear interest at a fixed rate of 6.75% until Dec. 30, 2020 and at a floating rate based on Libor after that. Interest will be paid semiannually during the fixed-rate period and will be paid quarterly during the floating-rate period.
The notes are redeemable on or after Dec. 30, 2020.
The notes are expected to qualify as tier 2 capital.
Proceeds are being used to support organic growth and for other general business purposes.
The bank holding company is based in Roanoke, Va.
| Issuer: | HomeTown Bankshares Corp.
|
| Issue: | Fixed-to-floating subordinated notes
|
| Amount: | $7.5 million
|
| Maturity: | Dec. 30, 2025
|
| Coupon: | Fixed rate of 6.75% until Dec. 30, 2020, then a floating rate based on Libor after that; payable semiannually during the fixed-rate period and payable quarterly during the floating-rate period
|
| Call option: | On or after Dec. 30, 2020
|
| Settlement date: | Dec. 18
|
| Distribution: | Private placement
|
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