By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – American Riviera Bancorp completed a private placement of $18 million 3.75% 10-year fixed-to-floating rate subordinated notes, according to a news release Monday.
The notes will bear interest at an annual rate of 3.75% until March 1, 2027, and thereafter at SOFR plus 212 basis points. The floating interest rate will reset quarterly.
The company may redeem the notes, in whole or in part, at any time after March 1, 2027 at par plus interest.
The notes are intended to qualify as tier 2 capital for regulatory purposes.
D.A. Davidson & Co. was the placement agent.
Sheppard, Mullin, Richter & Hampton, LLP was the company’s legal counsel.
Stuart | Moore | Staub served as the legal counsel for the placement agent.
Proceeds from this placement will be used for general corporate purposes.
Based in Santa Barbara, Calif., the issuer is the parent company for American Riviera Bank, a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California.
| Issuer: | American Riviera Bancorp
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| Amount: | $18 million
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| Issue: | Fixed-to-floating rate subordinated notes
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| Maturity: | March 1, 2032
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| Placement agent: | D.A. Davidson & Co.
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| Counsel to issuer: | Sheppard, Mullin, Richter & Hampton, LLP
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| Counsel to agent: | Stuart | Moore | Staub
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| Coupon: | 3.75% for the first five years, then SOFR plus 212 bps
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| Call: | Redeemable at par plus interest after March 1, 2027
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| Settlement date: | Feb. 28
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| Distribution: | Private placement
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