Village Bank and Trust Financial Corp. (NASDAQ:VBFC), the parent company of Village Bank, has completed the sale of $5.7 million of fixed-to-floating rate subordinated notes.
The notes, due in 2028, will initially bear interest at 6.5% per annum until March 21, 2023. Thereafter, the notes will be payable at an annual floating rate equal to three-month LIBOR, plus a spread of 3.73% until maturity or early redemption.
Village Bank and Trust Financial Corp. plans to use the net proceeds for repayment of up to $5,027,000 aggregate liquidation value of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, plus accrued dividends and for general corporate purposes.
“This is another meaningful step forward for Village,” said Bill Foster, President and CEO. “The issuance of the subordinated debt to redeem our preferred stock will save our common shareholders approximately $160,000 per year after tax compared to the preferred stock dividends. We are grateful to the teams at FIG Partners, Williams Mullen and Silver, Freedman, Taff & Tiernan LLP for their exceptional advice and execution.”
The FIG team included Greg Gersack, Senior Managing Principal and Co-Head of Investment Banking;
Sloan Deerin, Principal; and Lozan Aleksandrov, Senior Vice President and Deputy Head of Capital Markets.
Since 2003, FIG has been the trusted advisor to community banks and investors. To learn more about FIG’s investment banking services, visit www.figpartners.com.