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BayCom Corp Announces Pricing of Subordinated Notes Offering
WALNUT CREEK, Calif.--(BUSINESS WIRE)-- BayCom Corp (NASDAQ GSM: BCML) (“BayCom” or the “Company”), the parent company of United Business Bank (the “Bank”),
About this update from Baycom Corp
[{"type":"text","content":" WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nBayCom Corp (NASDAQ GSM: BCML) (“BayCom” or the “Company”), the parent company of United Business Bank (the “Bank”), today announced the pricing of its public offering of $65.0 million aggregate principal amount of 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”). The price to the public is 100% of the principal amount of the Notes. Interest on the Notes initially will accrue at a rate equal to 5.25% per annum from and including August 10, 2020 to, but excluding, September 15, 2025 or the earlier redemption date, payable semi-annually in arrears. From and including September 15, 2025 to, but excluding, September 15, 2030 or the earlier redemption date, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the indenture relating to the Notes), plus a spread of 521 basis points, payable quarterly in arrears. The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The offering is expected to close on August 10, 2020, subject to the satisfaction of customary closing conditions.\n\n\nJanney Montgomery Scott LLC and D.A. Davidson & Co. are acting as book-running managers and Hovde Group, LLC is acting as co-manager for the offering.\n\n\nThe Company estimates that the net proceeds of the offering will be approximately $63.8 million, after deducting underwriting discounts and commissions, but before deducting estimated transaction expenses payable by the Company. The Company intends to use the net proceeds of the offering for general corporate purposes, which may include providing capital to support its growth organically or through strategic acquisitions, repayment or redemption of outstanding indebtedness including a $6.0 million term loan due October 30, 2020, the payment of dividends, financing investments and capital expenditures, repurchasing shares of its common stock, and for investments in the Bank as regulatory capital.\n\n\nThe offering is being made by means of a prospectus supplement and accompanying base prospectus. The Company has filed with the U.S. Securities and Exchange Commission (“SEC”) a registration statement (File No. 333-237791) and a preliminary prospectus supplement to the base prospectus contained in the registration statement for the Notes t...