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FS Bancorp, Inc. Announces Completion of $50.0 Million Subordinated Notes Offering
MOUNTLAKE TERRACE, WA / ACCESSWIRE / February 10, 2021 / FS Bancorp, Inc. (NASDAQ:FSBW) (the "Company"), the holding company for 1st Security Bank of
About this update from Fs Bancorp, Inc.
[{"type":"text","content":"MOUNTLAKE TERRACE, WA / ACCESSWIRE / February 10, 2021 / FS Bancorp, Inc. (NASDAQ:FSBW) (the \"Company\"), the holding company for 1st Security Bank of Washington (the \"Bank\"), announced today the issuance of $50 million aggregate principal amount of fixed-to-floating rate subordinated notes (the \"Notes\") in a private placement transaction. The Company intends to use the net proceeds from the offering for general corporate purposes, including providing capital to support the organic growth of the Bank, potential share repurchase activities, and potential acquisition opportunities.The Notes have an initial fixed rate of 3.75% per annum, mature on February 15, 2031, and become callable at the Company's option beginning on February 15, 2026 (\"call date\"), subject to certain exceptions. Starting on the call date, the interest rate will reset quarterly to an interest rate per annum equal to the current three-month SOFR plus 337 basis points.Joe Adams, Chief Executive Officer of the Company, commented, \"This successful capital raise will allow us to remain nimble and opportunistic on behalf of our customers, employees, communities, and shareholders. Through issuance of these notes, we have further enhanced our capital levels, and we are pleased with the attractive pricing in the fixed income markets.\"In connection with the sale and issuance of the Notes, the Company entered into a Registration Rights Agreement (the \"Registration Rights Agreement\") with the purchasers of the Notes pursuant to which the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, and have substantially the same terms as the Notes. Under certain circumstances, if the Company fails to meet its obligations under the Registration Rights Agreement, it would be required to pay additional interest to the holders of the Notes.The lead placement agent was Raymond James & Associates, Inc., and co-placement agents were D.A. Davidson & Co. and Janney Montgomery Scott. Holland & Knight LLP served as legal counsel to the placement agents, and Breyer & Associates PC served as legal counsel to the Company.This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, ...