M2 EQUITYBITES-July 10, 2020-Evans Bancorp closes USD20m private placement of subordinated notes due 2030
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Evans Bancorp Inc (NYSE American:EVBN) stated on Thursday that it has completed its private placement of USD20m in fixed-to-floating rate subordinated notes due 2030.
These notes are intended to qualify as Tier 2 capital for regulatory purposes. They will bear interest at a fixed annual rate of 6.00% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 590 basis points.
Net proceeds will be used for general corporate purposes, organic growth and for investments in the company's subsidiary bank as regulatory capital.
In connection with the issue and sale of the notes, Evans Bancorp entered into a registration rights agreement with the purchasers of the notes under which it has agreed to take certain actions to provide for the exchange of the notes for subordinated notes that are registered...