By Rebecca Melvin
Concord, N.H., Sept. 24 – The Change Co. closed a $75 million private placement of 4.75% fixed-to-floating rate senior notes (Egan Jones: A-) due 2031, according to a company release on Friday.
The notes are non-callable for five years.
Interest accrues at 4.75% for the first five years and then at a floating rate equal to SOFR plus 408 basis points.
Proceeds will be used to fund initiatives to increase black homeownership, Latino homeownership and homeownership in low-income communities by $1 billion each.
The offering was oversubscribed and upsized due to strong demand, according to the release.
Performance Trust Capital Partners was placement agent of the offering.
The Irvine, Calif., company offers banking and lending services with the goal of bringing social and racial equity to the business.
| Issuer: | The Change Co.
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| Issue: | Fixed-to-floating rate senior notes
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| Amount: | $75 million
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| Maturity: | 2031
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| Coupon: | 4.75% for first five years, then at SOFR plus 408 bps
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| Call: | After five years
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| Agent: | Performance Trust Capital Partners
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| Announcement date: | Sept. 24
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| Ratings: | Egan Jones: A-
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| Distribution: | Private placement
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