By Wendy Van Sickle
Columbus, Ohio, May 11 – National Capital Bancorp Inc. announced the closing of $14 million 3.75% fixed-to-floating rate subordinated notes due 2031 in a private placement to certain qualified investors, according to a press release.
The notes have a starting interest rate of 3.75%, payable quarterly. They were issued at par.
The rate converts to a floating rate on May 15, 2026 of SOFR plus 305 basis points, payable quarterly.
The notes can be redeemed after the reset date.
The notes qualify as tier 2 capital
Proceeds will be used for general corporate purposes, including to provide capital to support growth.
Piper Sandler & Co. is the placement agent.
The issuer is a Washington, D.C.-based holding company for the National Capital Bank of Washington.
Issuer: | National Capital Bancorp Inc.
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Issue: | Subordinated fixed-to-floating rate notes
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Amount: | $14 million
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Maturity: | 2031
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Placement agent: | Piper Sandler & Co.
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Coupon: | 3.75% initial rate; converts to SOFR plus 305 bps on May 15, 2026
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Price: | Par
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Call features: | Callable at any time after May 15, 2026
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Settlement date: | April 20
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Distribution: | Private placement
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