By Lisa Kerner
Charlotte, N.C., Nov. 10 – Mid Penn Bancorp, Inc. agreed to issue $7.5 million of subordinated notes due 2025.
The offer is expected to close on or about Dec. 9, according to a form 8-K filed with the Securities and Exchange Commission.
The notes will bear interest at a rate of 5.15% per year for the first five years and then at a floating rate equal to the Wall Street Journal’s prime rate plus 50 basis points, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 4%.
Interest is payable quarterly in arrears on Jan. 1, April 1, July 1 and Oct. 1 of each year, beginning on Jan. 1, 2016.
The notes are redeemable in whole or in part, without premium or penalty, at any time on or after Dec. 9, 2020 and prior to Dec. 9, 2025.
Mid Penn intends to use the proceeds to redeem its series B preferred shares and for general corporate purposes, including the redemption, if approved, of all of its issued and outstanding shares of senior non-cumulative perpetual preferred stock, series C, which are held by the U.S. Department of Treasury and issued under its small business lending fund program.
Mid Penn is a Millersburg, Pa.-based bank holding company.
| Issuer: | Mid Penn Bancorp, Inc.
|
| Issue: | Subordinated notes
|
| Amount: | $7.5 million
|
| Coupon: | 5.15% per year for the first five years, then at Wall Street Journal’s prime rate plus 50 bps
|
| Maturity: | Dec. 9, 2025
|
| Distribution: | Private placement
|
| Settlement: | Dec. 9
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
