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Mercantile Bank Corporation Closes Private Placement of $75 Million of Subordinated Notes
GRAND RAPIDS, Mich., Dec. 15, 2021 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile" or the "Company") today announced the pricing of
About this update from Mercantile Bank Corporation
[{"type":"text","content":"GRAND RAPIDS, Mich., Dec. 15, 2021 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) (\"Mercantile\" or the \"Company\") today announced the pricing of its issuance, offer, and sale of $75 million aggregated principal amount of fixed-to-floating rate subordinated notes due 2031 (the \"Notes\") in a private placement. The Notes bear a fixed rate of 3.25% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 212 basis points. The Company intends to use the net proceeds from the offering for general corporate purposes.\nIn connection with the issuance and sale of the Notes, Mercantile entered into a registration rights agreement with the purchasers of the Notes pursuant to which Mercantile 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.\n\"We are very pleased with the outcome of this capital raise,\" said Robert B. Kaminski Jr., President and CEO of Mercantile. \"The proceeds will enable Mercantile to continue to capitalize on its strong commercial loan growth and current loan pipeline, which we believe will remain robust into 2022.\"\nRaymond James & Associates, Inc. served as the sole placement agent for the offering. Dickinson Wright PLLC served as legal counsel to the Company and Dinsmore & Shohl LLP served as legal counsel to the placement agent.\nThis 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 and shall not constitute an offer, solicitation or in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.\nAbout Mercantile Bank Corporation\nBased in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its bankin...