April 1, 2020 — US Metro Bancorp (OTC Pink: USMT), the holding company for US Metro Bank, has completed a private placement of $10 million in subordinated notes.
Based in Garden Grove, California, the bank intends to use the net proceeds of the notes to support organic growth, to fund future acquisitions and for general corporate purposes, including investments in its banking subsidiary.
The notes will initially bear an interest rate of 5.25% per annum from March 31, 2020 to March 30, 2025, with interest payable semi-annually in arrears. 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, plus a spread of 4.68%.
US Metro Bancorp may redeem the notes, in whole or in part, on or after March 31, 2025. The notes are not subject to redemption at the option of the holders and 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; Lozan Aleksandrov, Managing Director; Ricardo Diaz, Managing Director; and Jason Werner, Director.
More information is available here.
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