Southern National plans $40 million 10-year fixed-to-floating subordinated notes

By James McCandless

San Antonio, Aug. 19 – Southern National Bancorp of Virginia, Inc. plans to price a $40 million offering of $1,000-par fixed-to-floating rate subordinated notes (Kroll: BBB-) due August 2030, according to filings with the Securities and Exchange Commission.

Janney Montgomery Scott LLC and Piper Sandler & Co. are the bookrunners.

The co-manager is Stephens Inc.

Coupons are payable semiannually. When the coupon converts to a floating rate, they become payable quarterly.

The coupon is fixed until 2025, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable after a change in law, a tier 2 capital event or if the company is required to register as an investment company at par.

Southern National plans to use the proceeds for general corporate purposes.

The company does not plan to list the notes on any securities exchange.

Southern National is a McLean, Va.-based bank holding company.

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