Meridian Bank Announces Completion of $40 Million Subordinated Notes Offering

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Image via Meridian Bank.

Meridian Bank has announced the completion of its offering of $40 million in fixed-to-floating rate subordinated notes due 2029 (the “Notes”) to certain qualified institutional buyers and institutional accredited investors in a private placement transaction.

The Notes will initially bear interest at a fixed annual rate of 5.375 percent, for five years and will reset quarterly thereafter to the then-current three-month SOFR plus 395 basis points. Meridian may redeem the Notes on or after Dec. 30, 2024, or at any time upon certain other specified events. The Notes have been structured to qualify initially as Tier 2 capital for Meridian for regulatory capital purposes.

Meridian intends to use the net proceeds of the offering for general corporate purposes, including organic growth and the repayment of a portion of the bank’s existing indebtedness.

“This successful capital raise is an affirmation of Meridian’s tremendous opportunity in our market,” said Chairman and CEO Chris Annas. “This funding will allow us to continue capitalizing on opportunities on behalf of our customers, our shareholders, and our team. Through issuance of these notes, we have cost effectively increased our capital levels without diluting our current shareholders.”

Sandler O’Neill + Partners, L.P. acted as lead placement agent, and D.A. Davidson & Co. acted as co-placement agent for the offering. Stradley Ronon Stevens & Young, LLP served as legal counsel to Meridian, and Silver, Freedman, Taff & Tiernan LLP served as legal counsel to the placement agents.

Click here to learn more about Meridian Bank.

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