By Sarah Lizee
Olympia, Wash., Aug. 5 – Franklin Financial Services Corp. sold $15 million of 5% fixed- to floating-rate subordinated notes due Sept. 1, 2030 and $5 million of 5.25% fixed- to floating-rate subordinated notes due Sept. 1, 2035 at par in a private placement on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used to support organic growth and for general corporate purposes.
The 2030 notes bear interest at 5% until June 30, 2025. After that, interest will be SOFR plus 493 basis points.
The 2035 notes bear interest at 5.25% until June 30, 2030. After that, interest will be SOFR plus 492 bps.
The 2030 notes are redeemable at par plus accrued interest in whole or in part on or after Aug. 4, 2025 and on any coupon payment date after that.
The 2035 notes are redeemable at par plus accrued interest in whole or in part on or after Aug. 4, 2030 and on any coupon payment date after that.
Neither series is putable.
Performance Trust Capital Partners, LLC acted as placement agent for the offering.
The commercial bank and trust company is based in Chambersburg, Pa.
| Issuer: | Franklin Financial Services Corp.
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| Issue: | Fixed- to floating-rate subordinated notes
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| Amount: | $20 million
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| Placement agent: | Performance Trust Capital Partners, LLC
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| Settlement date: | Aug. 4
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| Distribution: | Private placement
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| 2030 notes
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| Amount: | $15 million
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| Maturity: | Sept. 1, 2030
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| Coupon: | 5% until June 30, 2025; after that, SOFR plus 493 bps
|
| Price: | Par
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| Call: | At par plus accrued interest in whole or in part on or after Aug. 4, 2025 and on any coupon payment date after that
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| 2035 notes
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| Amount: | $5 million
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| Maturity: | Sept. 1, 2035
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| Coupon: | 5.25% until June 30, 2030; after that, SOFR plus 492 bps
|
| Price: | Par
|
| Call: | At par plus accrued interest in whole or in part on or after Aug. 4, 2030 and on any coupon payment date after that
|
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