Northpointe Bancshares, Inc. announced the completion of a $70 million private placement of 7.50% Fixed-to-Floating Rate Subordinated Notes due 2035.
The company intends to use the net proceeds to redeem its existing 8.25% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock.
The Notes will initially bear interest at a fixed rate of 7.50% per annum.
Private Placement Completion
The company successfully completed a private placement offering of $70 million in Subordinated Notes.
Use of Proceeds
Intends to use the funds to redeem existing Preferred Stock, enhancing the company's capital structure.
Interest Rate Structure
The Notes will bear a fixed interest rate of 7.50% until December 15, 2030, and then reset quarterly to a floating rate.
- The completion of the Notes offering will provide Northpointe with additional capital
- The redemption of the existing Preferred Stock will help optimize the company's capital.
- The structure of the Notes as Tier 2 capital enhances Northpointe's regulatory capital position.
Overall, the successful offering of the Subordinated Notes and the planned redemption of the Preferred Stock demonstrate Northpointe's commitment to optimizing its capital structure and strengthening its financial position in the long term.