By Taylor Fox
New York, Dec. 9 – Codorus Valley Bancorp., Inc. completed its private placement of $31 million of 4.5% fixed-to-floating-rate subordinated unsecured notes due Dec. 9, 2030, according to a news release.
The notes are structured to qualify as tier 2 capital for Codorus for regulatory capital purposes.
The notes will initially bear interest at a fixed rate of 4.5% until December 2025; after that the interest rate will reset quarterly to an annual floating rate equal to 90-day average SOFR plus 404 basis points.
The notes are redeemable in whole or in part on or after Dec. 9, 2025 at par plus accrued and unpaid interest.
The notes are not putable.
Codorus plans to use the proceeds for general corporate purposes.
Boenning & Scattergood, Inc. is the placement agent.
The bank holding company is based in York, Pa.
| Issuer: | Codorus Valley Bancorp., Inc.
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| Issue: | Fixed-to-floating-rate subordinated unsecured notes
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| Amount: | $31 million
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| Maturity: | Dec. 9, 2030
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| Coupon: | 4.5% until December 2025; after that, resets quarterly to 90-day average SOFR plus 404 bps;
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| Placement agent: | Boenning & Scattergood, Inc.
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| Call option: | In whole or in part on or after Dec. 9, 2025 at par plus accrued interest
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| Put option: | No
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| Announcement date: | Dec. 9
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| Distribution: | Private placement
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