By Lisa Kerner
Charlotte, N.C., Oct. 19 – Pathfinder Bancorp, Inc. received a $10 million subordinated loan from Community Funding CLO, Ltd. on Oct. 15.
The loan bears interest at a fixed annual rate of 6.25% and is scheduled to mature on Oct. 1, 2025, according to an 8-K filed with the Securities and Exchange Commission.
For the period beginning immediately after Oct. 15 through but excluding March 1, the lender will rebate an amount equal to 2.75% per annum to the company, resulting in a net interest rate of 3.5% per annum to be paid by the company.
Interest is payable quarterly in arrears.
Pathfinder cannot repay the loan until after Oct. 15, 2020, subject to limited exceptions.
Proceeds will be used to redeem all or a portion of the outstanding 13,000 shares of the company’s series A preferred stock by the end of 2015. The stock was issued to the Treasury as part of the company’s participation in the Small Business Lending Fund.
Pathfinder is a bank holding company based in Oswego, N.Y.
| Issuer: | Pathfinder Bancorp, Inc.
|
| Issue: | Subordinated loan
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| Amount: | $10 million
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| Coupon: | 6.25%, payable quarterly
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| Maturity: | Oct. 1, 2025
|
| Call option: | After Oct. 15, 2020
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| Lender: | Community Funding CLO, Ltd.
|
| Settlement date: | Oct. 15
|
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