Business
United Bancorp, Inc. Completes $20 Million Subordinated Debt Offering
MARTINS FERRY, Ohio, May 14, 2019 /PRNewswire/ -- United Bancorp, Inc. (NASDAQ: UBCP), the parent company of Unified Bank, announced today that it has
About this update from United Bancorp, Inc.
[{"type":"text","content":"MARTINS FERRY, Ohio, May 14, 2019 /PRNewswire/ -- United Bancorp, Inc. (NASDAQ: UBCP), the parent company of Unified Bank, announced today that it has completed the private placement of $20 million in fixed-to-floating rate subordinated notes due 2029 (the \"Notes\"). The Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines, and the proceeds from the sale of the Notes will be utilized to support regulatory capital ratios and for general corporate purposes, including growth initiatives at Unified Bank. \n\n \nPresident and CEO, Scott A. Everson, stated, \"We are pleased to announce the successful completion of our subordinated debt offering at terms that are favorable to our Company. The portion of this new capital that we downstream to our Bank is leverageable, Tier 1 capital, which will be integral to fueling the growth that we strategically envision for our organization. Through the issuance of these notes, we have cost-effectively increased our capital levels without diluting our current shareholders.\"\nThe Notes will initially bear interest at 6.00% per annum, beginning May 15, 2019 through May 14, 2024, payable semi-annually in arrears. From May 15, 2024 through May 14, 2029, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR plus 362.5 basis points, payable quarterly in arrears. Beginning on May 15, 2024 through maturity, the Notes may be redeemed, at United Bancorp's option, on any scheduled interest payment date. The Notes will mature on May 15, 2029. \nSandler O'Neill + Partners, L.P., served as the sole placement agent and was advised by Holland & Knight, LLP. United Bancorp, Inc. was advised by Shumaker, Loop & Kendrick, LLP. \nThe Notes have 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 does not constitute an offer to sell, or the solicitation of an offer to buy, any security.\nAbout United Bancorp, Inc.\nUnited Bancorp, Inc. is headquartered in Martins Ferry, Ohio and has total assets of $621.0 million and total shareholder's equity of $53.8 million as of March 31, 2019. Through i...