Shepherd’s Finance offers $70 million fixed-rate subordinated notes

By Marisa Wong

Los Angeles, Sept. 12 – Shepherd’s Finance, LLC is offering up to $70 million of fixed-rate subordinated notes, according to an amended Form S-1 filing with the Securities and Exchange Commission.

The company may issue the notes in varying purchase amounts and maturities. The notes will be offered directly by the company without an underwriter or placement agent.

The notes will initially be offered with maturities ranging from 12 months to 48 months.

For each maturity, the company will establish an interest rate. Generally, the coupon ranges from 5% to 10% for 12-month notes, 6% to 10% for 24-month notes, 3% to 6% for 36-month notes and 8% to 12% for 48-month notes. As of the date of the prospectus, the interest rate is 6.5% for 12-month notes, 7% for 24-month notes, 6% for 36-month notes and 8% for 48-month notes.

Proceeds will be used to, among other things, make payments on other borrowings, repay notes at maturity or upon redemption, make interest payments and fund various activities.

As of June 30, the company had about $20,349,000 of previously issued notes outstanding.

U.S. Bank Trust Co., NA is the trustee.

The high-yield investment company is based in Jacksonville, Fla.

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