Security Federal Corporation Completes Private Placement of $30 Million of Subordinated Notes |
Friday, 22. November 2019 22:33 | ||
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AIKEN, S.C., Nov. 22, 2019 (GLOBE NEWSWIRE) -- Security Federal Corporation (OTCBB:SFDL) (the “Company”), the holding company for Security Federal Bank (“Bank”), announced today that it has completed a private placement of $30 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”) to certain institutional investors. $17.5 million of the Notes (the “10-Year Notes”) are non-callable for five years, have a stated maturity of November 22, 2029, and bear interest at a fixed rate of 5.25% per year, from and including November 22, 2019, to, but excluding November 22, 2024. From and including November 22, 2024, to the maturity date or early redemption date, the interest rate for the 10-Year Notes will reset semi-annually to a level equal to the then-current three-month LIBOR rate plus 369 basis points. $12.5 million of the Notes (the “15-Year Notes”) are non-callable for ten years, have a stated maturity of November 22, 2034, and bear interest at a fixed rate of 5.25% per year, from and including November 22, 2019, to, but excluding November 22, 2029. From and including November 22, 2029, to the maturity date or early redemption date, the interest rate for the 15-Year Notes will reset semi-annually to a level equal to the then-current three-month LIBOR rate plus 357 basis points. The Notes have been structured to qualify as Tier 2 capital for the Company under applicable regulatory guidelines. The Company plans to use the net proceeds from the sale of the Notes for general corporate purposes, which may include increasing Bank level capital ratios and to support future growth. The Notes were assigned an investment grade rating of BBB+ from Egan-Jones Ratings Company. Performance Trust Capital Partners, LLC served as placement agent for the sale of the Notes. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute such an offer, solicitation or sale in any jurisdiction in which an offering would be unlawful. About Security Federal Corporation Forward-Looking Statements
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