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CNB Financial Corporation Announces Closing of $85 Million of 3.25% Fixed-to-Floating Rate Subordinated Notes
CLEARFIELD, Pa., June 03, 2021 (GLOBE NEWSWIRE) -- CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank,
About this update from Cnb Financial Corporation
[{"type":"text","content":"CLEARFIELD, Pa., June 03, 2021 (GLOBE NEWSWIRE) -- CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, announced today that it has completed a private placement of $85 million aggregate principal amount of its 3.25% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain “qualified institutional investors,” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or institutional “accredited investors,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Unless earlier redeemed, the Notes mature on June 15, 2031. The Notes will initially bear interest from and including the original issue date to but excluding June 15, 2026 or the earlier redemption, at a fixed rate of 3.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year, beginning December 15, 2021, and thereafter to, but excluding, the maturity date or earlier redemption, at an interest rate per year, reset quarterly, equal to the sum of the three-month average Secured Overnight Financing Rate (“SOFR”), determined on the determination date of the applicable interest period, plus 258 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year. The Corporation may also redeem the Notes, in whole or in part, on any interest payment date on or after June 15, 2026, and in whole at any time upon the occurrence of certain events, subject in each case to the approval of the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital adequacy regulations. The Corporation expects to use the net proceeds of the offering for general corporate purposes, which may include the planned redemption of the Corporation’s existing $50 million of subordinated indebtedness, in whole or in part (subject to the receipt of any applicable regulatory approvals), and support of additional loan growth. Keefe, Bruyette & Woods, A Stifel Company, acted as lead placement agent for the offering. Boenning & Scattergood, Inc. and Janney Montgomery Scott acted as co-placement agents. The Notes sold in the offering have not been registered under the Securities Act and may not be offered or sold in the ...