CoastalSouth Bancshares, Inc. announced that it has received $15 million in funding
September 08, 2020
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CoastalSouth Bancshares, Inc. (OTCPK:COSO) announced private placement of 5.95% fixed-to-floating rate subordinated notes due 2030 for gross proceeds of $15,000,000 on September 9, 2020. The notes have been structured to qualify as tier 2 capital for regulatory capital purposes. The notes are unsecured and have a ten-year term, maturing September 15, 2030, and will bear interest at a fixed annual rate of 5.95%, payable semi-annually in arrears, for the first five years of the term and the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate plus a spread of 582 basis points, payable quarterly in arrears, provided, however, that, in the event the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. The company may redeem the notes, in whole or in part, on any interest payment date on or after September 15, 2025, and to redeem the notes at any time in whole upon certain other specified events. The minimum investment accepted from any outside investor is $500,000. The company issued securities pursuant to exemption provided under Regulation D. The transaction included participation from 9 investors.
CoastalSouth Bancshares, Inc. is a bank holding company. The Companyâs subsidiary is Coastal States Bank (CSB). CSB operates retail banking branches in Beaufort County, South Carolina, Chatham County, Georgia, Dawson County, Georgia, Fulton, County, Georgia and Forsyth County, Georgia. CSB has a community bank presence in the Lowcountry of South Carolina (Hilton Head Island and Bluffton), Savannah, and Atlanta. It provides a full range of banking services designed for businesses, their owners, and individuals looking for a local banking partner. Its services include digital banking, debit cards, e-statements and notices, loan payments and telephone banking. CSBâs wholly owned subsidiary, Coastal States Mortgage, Inc. (CSM), a mortgage company focused on originating and selling residential mortgages to investors. CSB also serves communities across the country through its government guaranteed lending, senior housing, mortgage banker finance, and marine lending lines of business.