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Meridian Corporation Announces Completion of $40 Million Subordinated Notes Offering
MALVERN, Pa., Dec. 18, 2019 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) (“Meridian”), holding company for Meridian Bank (the “Bank”), today
About this update from Meridian Corporation
[{"type":"text","content":"MALVERN, Pa., Dec. 18, 2019 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) (“Meridian”), holding company for Meridian Bank (the “Bank”), today announced the completion of its offering of $40 million in fixed-to-floating rate subordinated notes due 2029 (the “Notes”) to certain qualified institutional buyers and institutional accredited investors in a private placement transaction. The Notes will initially bear interest at a fixed annual rate of 5.375%, for five years and will reset quarterly thereafter to the then current three-month SOFR plus 395 basis points. Meridian may redeem the Notes on or after December 30, 2024, or at any time upon certain other specified events. The Notes have been structured to qualify initially as Tier 2 capital for Meridian for regulatory capital purposes. Meridian intends to use the net proceeds of the offering for general corporate purposes, including organic growth and the repayment of a portion of the Bank’s existing indebtedness.\n “This successful capital raise is an affirmation of Meridian’s tremendous opportunity in our market,” said Chairman and CEO Chris Annas. “This funding will allow us to continue capitalizing on opportunities on behalf of our customers, our shareholders and our team. Through issuance of these notes, we have cost effectively increased our capital levels without diluting our current shareholders.” Sandler O’Neill + Partners, L.P. acted as lead placement agent and D.A. Davidson & Co. acted as co-placement agent for the offering. Stradley Ronon Stevens & Young, LLP served as legal counsel to Meridian and Silver, Freedman, Taff & Tiernan LLP served as legal counsel to the placement agents. 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 by 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 Notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from the registration requirements. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other governmen...