Community First Bancorporation today announced the completion of a private placement of $10.0 million of its 5.125% Fixed-to-Floating Rate Subordinated Notes due 2030 to certain qualified institutional buyers and accredited investors.
WALHALLA, SC / ACCESSWIRE / November 24, 2020 / Community First Bancorporation (the "Company") (OTC PINK:CFOK), the bank holding company for Community First Bank (the "Bank"), today announced the completion of a private placement of $10.0 million of its 5.125% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Notes") to certain qualified institutional buyers and accredited investors.
The Notes have a maturity date of November 23, 2030 and initially bear interest, payable semi-annually in arrears, at a fixed annual rate of 5.125% per annum until November 23, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will be reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the three-month secured overnight financing rate (SOFR) plus 484.3 basis points, payable semi-annually in arrears, until maturity or earlier redemption date. The Company may redeem the Notes at par, in whole or in part, at its option, beginning on November 23, 2025. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company.
The Company intends to use the net proceeds from the private placement to fund $8.8 million of its purchase of Security Federal Bancorp announced on October 9, 2020, to enhance its and the banks regulatory capital and for general corporate purposes.
D.A. Davidson and Co. served as sole placement agent for Community First and Brooks, Pierce, McLendon, Humphrey & Leonard, LLP, served as legal counsel.
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Alisa Suddeth
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SOURCE: Community First Bancorporation