June 9, 2020 — Oak Ridge Financial Services, Inc. (OTCPK: BKOR), the holding company for Bank of Oak Ridge, has completed a private placement of $10 million in subordinated notes.
The Company intends to use the net proceeds for general corporate purposes, including possible repayment of the currently outstanding subordinated debt callable in 2021.
The notes will initially bear interest at a rate of 6.25% annually from June 4, 2020, to but excluding June 4, 2025, with interest during this period payable semi-annually in arrears. From and including June 4, 2025 to but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly to an annual floating rate equal to the three-month LIBOR, or an alternative rate determined in accordance with the terms of the notes if the three-month LIBOR cannot be determined, plus 5.87%, with interest during this period payable quarterly in arrears.
The Company may redeem the notes, in whole or in part, on or after June 4, 2025 or, in whole but not in part, under certain limited circumstances set forth in the notes. The notes are not subject to redemption at the option of the holders. The notes are structured to qualify as Tier 2 Capital for regulatory capital purposes.
The team from Janney’s Financial Institutions Group included Greg Gersack, Head of Equity Capital Markets; John Schramm, Managing Director; Lozan Aleksandrov, Managing Director; and Ricardo Diaz, Managing Director.
Oak Ridge Financial Services, Inc.’s press release is available here.
FIG Partners Is Now Part Of Janney
In June 2019, FIG Partners joined Janney Montgomery Scott LLC, a leader in middle-market financing solutions. Janney places a high value on its consistent track record of delivering solutions to clients. Janney works with clients on a highly-personalized basis, providing exceptional service, commitment and senior level attention. Click here for more information.