MB Bancorp, Inc., the holding company for Manasquan Bank, announced that it has completed a private placement of $45 million aggregate principal amount of 6.50% fixed-to-floating rate subordinated notes due 2035.
The subordinated notes bear a fixed interest rate of 6.50% per annum for the first five years and will reset quarterly thereafter to the then-current three-month secured overnight financing rate (SOFR) plus 306 basis points.
MB Bancorp intends to utilize the net proceeds to redeem the company’s outstanding $30 million in aggregate principal amount of subordinated notes and for general corporate purposes.
The notes are intended to qualify as Tier 2 capital for MB Bancorp for regulatory purposes, and the portion that it contributes to Manasquan Bank will qualify as Tier 1 capital.
“We are extremely pleased with the success of this transaction, which enhances our financial flexibility and positions our enterprise to pursue strategic opportunities that will enhance our ability to deliver on our promise to continually enhance the client experience,” said James S. Vaccaro, chairman, president and chief executive officer of MB Bancorp.
“It reflects our ongoing commitment to growth, innovation and delivering exceptional value to our clients and communities.”
Piper Sandler & Co. served as the sole placement agent for the offering. Meeks Butera & Israel PLLC, Washington, D.C., and Jones Walker LLP, Washington, D.C., served as legal counsel to MB Bancorp, Inc. and Luse Gorman PC, Washington, D.C., served as legal counsel to Piper Sandler & Co.
