Towne Bank ( TOWN ), a community bank in Virginia and North Carolina, said after market close on Wednesday that it has priced $250 million of its fixed-to-floating rate subordinated notes due 2027.
The notes will initially bear interest at a fixed rate of 4.50% per annum, payable semi-annually in arrears, starting July 17, to, but excluding, July 30, 2022, and, thereafter, payable quarterly in arrears, at an annual floating rate equal to three-month Libor as determined for the applicable quarterly period, plus 2.550%.
The notes will mature on July 30, 2027.
The notes will be issued at a price of 100% of the principal amount thereof.
TowneBank expects to use the net proceeds for general corporate purposes, which may include supporting its growth organically or through strategic acquisitions.
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