Business
GBank Financial Holdings Inc. Completes $20.0 Million Subordinated Debt Offering
LAS VEGAS, Dec. 15, 2021 /PRNewswire/ -- GBank Financial Holdings Inc ("GBank" or the "Company") (OTCQX: GBFH), the parent company for Bank of George (the
About this update from Gbank Financial Holdings Inc.
[{"type":"text","content":"LAS VEGAS, Dec. 15, 2021 /PRNewswire/ -- GBank Financial Holdings Inc (\"GBank\" or the \"Company\") (OTCQX: GBFH), the parent company for Bank of George (the \"Bank\"), today announced the completion of a private placement on December 14, 2021, of $20.0 million in aggregate principal amount of 3.875% Fixed-to-Floating Rate Subordinated Notes due 2031 (the \"Notes\"). The Company intends to utilize the net proceeds for general corporate purposes.\n\"We are excited about the successful closing of our subordinated debt offering. We plan to utilize this debt capital to fuel our long-term business plan and the growth we hope to see in the future as we continue to expand our franchise and geographic footprint. We are pleased with the wide investor support we received,\" said Edward M. Nigro, Executive Chairman.\nThe Notes were structured to qualify as Tier 2 capital for GBank for regulatory capital purposes. The Notes initially bear a fixed interest rate of 3.875% until December 15, 2026, after which time and until maturity on December 15, 2031, the interest rate will reset quarterly to an annual floating rate equal to the Three-Month Term Secured Overnight Financing Rate (\"SOFR\") plus 289 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after December 15, 2026. Any redemption will be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest. \nPiper Sandler & Co. served as the sole placement agent for the offering. Sklar Williams PLLC and Hunton Andrews Kurth served as legal counsel to GBank, and Dickinson Wright PLLC served as legal counsel to the placement agent.\nThe offer and sale of the Notes has not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the unsecured Notes is not...