By Lisa Kerner
Charlotte, N.C., Dec. 16 – Two River Bancorp completed a private placement of $10 million of fixed- to floating-rate subordinated notes due 2025 to institutional accredited investors.
The notes bear interest, payable quarterly, at the rate of 6.25% per annum until Jan. 1, 2021.
On Jan. 1, 2021, the interest rate will be adjusted to float at an annual rate equal to Libor plus 464 basis points until maturity.
The notes are callable at par starting Dec. 14, 2020 and in limited circumstances before that date.
FIG Partners acted as placement agent.
Proceeds were used to repay the remaining $6 million of series C preferred stock that was issued to the U.S. Treasury in connection with the company’s participation in the Small Business Lending Fund Program.
The remaining proceeds will be used for general corporate purposes and to support future growth, according to a news release.
“This transaction is in line with our long-term capital management strategy of exiting SBLF in a deliberate and timely manner, and without any dilution to our shareholder base or detriment to our growth plans,” said president and chief executive officer William D. Moss.
Based in Tinton, N.J., Two River Bancorp is the holding company for Two River Community Bank.
| Issuer: | Two River Bancorp
|
| Issue: | Subordinated notes
|
| Amount: | $10 million
|
| Maturity: | Dec. 31, 2025
|
| Coupon: | 6.25% through Jan. 1, 2021; then Libor plus 464 bps through maturity
|
| Call: | Starting Dec. 14, 2020 at par
|
| Distribution: | Private placement
|
| Agent: | FIG Partners
|
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