HARRISBURG, Pa.--(BUSINESS WIRE)--LINKBANCORP, Inc. (OTC Pink: LNKB) (the “Company”), the parent company for LINKBANK, today announced the closing of a $20.0 million private placement of Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”). The Company intends to use the proceeds to support continued growth opportunities.
The Notes have a maturity date of October 1, 2030 and will initially bear interest at a fixed rate of 5.0% until October 1, 2025. From October 1, 2025 to the stated maturity date or early redemption date, the interest rate will reset semi-annually to an annual floating rate equal to the then-current three-month term Secured Overnight Financing Rate (SOFR) plus a spread of 475 basis points, but no less than 5.0%.
The Notes are redeemable by the Company, in whole or in part, on or after October 1, 2025 and at any time upon the occurrence of certain events. The Notes have been structured to qualify as Tier 2 capital for regulatory capital purposes.
Chief Executive Officer Andrew Samuel stated, “We are very pleased with the tremendous growth achieved by the LINKBANK team since our inception less than two years ago, and even more excited about opportunities for future growth which this new capital will help to fund.”
About LINKBANCORP, Inc.
LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK is a Pennsylvania state-chartered bank serving individuals, families, nonprofit and business clients throughout Central and Southeastern Pennsylvania. At June 30, 2020, LINKBANK had approximately $341 million in total assets. LINKBANCORP, Inc. common stock is traded over the counter (OTC Pink) under the symbol “LNKB.”
This news release contains forward-looking statements within the meaning of the federal securities laws. Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements, identified by words such as “will,” “expected,” “believe,” and “prospects,” involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties include but are not limited to general economic trends and changes in interest rates, increased competition, changes in consumer demand for financial services, the possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, and market disruptions. The Company undertakes no obligation to release revisions to these forward-looking statements publicly to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required by law.