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Avidbank Holdings, Inc. Announces Completion of $22 Million Private Placement of Subordinated Notes
SAN JOSE, Calif.--(BUSINESS WIRE)-- Avidbank Holdings, Inc., (OTC Pink: AVBH), a bank holding company and the parent company of Avidbank (the “Bank"), an
About this update from Avidbank Holdings, Inc.
[{"type":"text","content":" SAN JOSE, Calif.--(BUSINESS WIRE)--\nAvidbank Holdings, Inc., (OTC Pink: AVBH), a bank holding company and the parent company of Avidbank (the “Bank\"), an independent full-service commercial bank serving businesses and individuals primarily in Northern California, announced today the completion of a private placement of $22 million in ten-year, fixed-to-floating rate subordinated notes due 2029 (the “Notes”) to certain qualified institutional buyers and institutional accredited investors.\n\n\nThe Notes have a maturity date of December 30, 2029 and an initial interest rate of 5.0% per annum, payable semiannually for the first five years of the term, and then quarterly at a variable rate based on the then current 3-month SOFR plus 359.5 basis points. The Notes are redeemable after five years subject to certain conditions. The Notes have been structured to qualify as Tier 2 capital at the Company level for regulatory purposes.\n\n\nThe Notes received an investment grade BBB- rating from Kroll Bond Rating Agency, a nationally recognized statistical rating organization registered with the Securities and Exchange Commission.\n\n\nThe Company used proceeds from the placement of the Notes to repurchase $12 million of subordinated notes previously outstanding. The remaining proceeds are intended to be used for general corporate purposes, including the support of capital levels and loan growth at the Bank.\n\n\nChairman and Chief Executive Officer, Mark D. Mordell, stated, \"We are very pleased to announce the successful placement and repurchase of our subordinated debt. We again appreciate the confidence the market has shown in our mission to be a leading independent bank in the San Francisco Bay Area and beyond.\"\n\n\nSandler O'Neill + Partners, L.P. acted as sole placement agent for the private placement of the subordinated notes. Manatt, Phelps & Phillips, LLP served as legal counsel to Avidbank Holdings, Inc. and Holland & Knight LLP served as legal counsel to the placement agent.\n\n\nAbout Avidbank\n\n\nAvidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in San Jose, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, real estate construction and commercial real estate lending. Avidbank pr...