QCR Holdings, Inc. announced the completion of private placements totaling $70 million in aggregate principal amount subordinated notes.
The private placements included $50 million in 6.875% Fixed-to-Floating Rate Subordinated Notes due September 2035 and $20 million in 7.225% Fixed-to-Floating Subordinated Notes due September 2037.
The net proceeds from the private placements will be used for general corporate purposes, including the redemption of the Company's subordinated notes.
New Issuances Aligned with Redemption
The new issuances align with the Company's announced redemption of $70 million in callable subordinated notes, supporting long-term growth strategy.
Competitive Rates
The 2035 Notes carry a competitive rate of 6.875%, and when combined with the 2037 Notes, the blended rate is below 7%, showcasing the strength of the transaction.
Interest Rate Details
The 2035 Notes will bear interest at a fixed rate of 6.875% per year until September 15, 2030, then reset quarterly to a floating rate. The 2037 Notes will bear interest at a fixed rate of 7.225%, resetting quarterly from September 15, 2032.
- The private placements reinforce the Company's financial strength and Tier 2 capital structure.
- The successful placement with a local company highlights the strength of the Company's relationship-based community banking model.
QCR Holdings, Inc.'s completion of private placements demonstrates its strategic approach to capital management and commitment to long-term growth.