GREENVILLE, N.C.--(BUSINESS WIRE)--UB Bancorp (OTCQX: UBNC) (the “Company”), the parent of Union Bank (the “Bank”), is very pleased to announce the completion of a $25.0 million private placement offering of subordinated notes on May 29, 2020.
The notes are unsecured with a term of ten years, maturing on May 29, 2030. These notes bear an initial interest rate of 5.00% per annum, paying interest semi-annually in arrears on September 30th and March 30th. From May 30, 2025 through maturity, unless otherwise redeemed by the Company, the interest rate on the notes will reset quarterly and will be tied to three-month SOFR plus 464 basis points and will pay quarterly in arrears. The Company intends on using the proceeds from this private placement for general corporate purposes including enhancing the Bank’s capital position, supporting our overall growth, and other strategic alternatives that the Board and management determine are in the best interest of the Company’s shareholders.
Rob Jones, President and CEO, commented, “We are very excited to announce the completion of this subordinated debt raise. Our institution has a strong past and we look forward to a strong future. This additional capital will strengthen our Bank, allow us to continue serving the deposit and credit needs of our communities, and enhance our ability to take advantage of opportunities in the marketplace as they arise.”
Performance Trust Capital Partners, LLC served as sole placement agent and Brooks, Pierce, McLendon, Humphrey & Leonard, LLP served as the Company’s legal counsel for this offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The offering of the notes in the private placement was not registered under the Securities Act of 1933, as amended, or any state securities laws, and the notes may not be offered or sold in the United States absent registration, or applicable exemption from registration, under the Securities Act and applicable state securities laws.
UB Bancorp and Union Bank are headquartered in Greenville, North Carolina and operate 15 branches located in 12 counties throughout Eastern and Central North Carolina. UB Bancorp stock is traded on the OTCQX under the symbol UBNC.
This press release includes certain forward-looking statements in reliance on the “safe-harbor” provisions of The Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from those anticipated in any such forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements.