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Isabella Bank Corporation Completes $30 Million Subordinated Notes Offering
MT. PLEASANT, Mich., June 2, 2021 /PRNewswire/ -- Isabella Bank Corporation (OTCQX:ISBA) today announced the completion of its private placement of $30.0
About this update from Isabella Bank Corporation
[{"type":"text","content":"MT. PLEASANT, Mich., June 2, 2021 /PRNewswire/ -- Isabella Bank Corporation (OTCQX:ISBA) today announced the completion of its private placement of $30.0 million in aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the \"Notes\") to various institutional investors (the \"Offering\"). The price for the Notes was 100% of the principal amount of the Notes. The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The Corporation intends to utilize the net proceeds from the Offering for general corporate purposes, including potential repurchases of ISBA stock and/or merger and acquisition activity.\n\"I am pleased to announce the successful completion of our subordinated debt offering under favorable market terms,\" said Jae A. Evans, President and Chief Executive Officer. \"This issuance is an opportunity for Isabella Bank Corporation to raise capital without issuing additional shares and diluting shareholder value. The proceeds from this debt offering will assist in our ability to continue executing our long-term strategic plan, finance organic growth, and strengthen our already strong capital position.\"\nThe Notes will initially bear a fixed interest rate of 3.25% until June 15, 2026, after which time until maturity on June 15, 2031, the interest rate will reset quarterly to an annual floating rate equal to the then-current 3-month SOFR (Secured Overnight Financing Rate) plus 256 basis points. The Notes are redeemable by the Corporation at its option, in whole or in part, on or after June 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. The Notes are not subject to redemption at the option of the holders.\nPiper Sandler & Co. was the sole placement agent for the transaction.\nThe offer and sale of the Notes was not registered under the Securities Act of 1933, as amended, or any state securities laws pursuant to an applicable exemption from registration requirements. The Notes may not be offered or sold 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 juris...