The First Bancshares, Inc. Issues $24 Million in Aggregate Principal Amount of 5.875% Fixed-To-Floating Rate Subordinated Notes Due 2028 and $42 Million in Aggregate Principal Amount of 6.40% Fixed-To-Floating Rate Subordinated Notes Due 2033
May 01, 2018 at 04:25 pm EDT
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On April 30, 2018, The First Bancshares, Inc. entered into two Subordinated Note Purchase Agreements with certain institutional accredited investors pursuant to which the Company sold and issued $24 million in aggregate principal amount of 5.875% fixed-to-floating rate subordinated notes due 2028 and $42 million in aggregate principal amount of 6.40% fixed-to-floating rate subordinated notes due 2033. The 10-Year Notes have a stated maturity of May 1, 2028, and bear interest at a fixed rate of 5.875% per year, from and including April 30, 2018 but excluding May 1, 2023, computed on the basis of a 360-day year consisting of twelve 30-day months, payable semiannually in arrears on May 1 and November 1 of each year. From and including May 1, 2023 to but excluding the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate equal to the then-current three-month LIBOR rate plus 294 basis points, computed on the basis of a 360-day year and the actual number of days elapsed, payable quarterly in arrears on February 1, May 1, August 1, and November 1. The 15-Year Notes have a stated maturity of May 1, 2033, and bear interest at a fixed rate of 6.40% per year, from and including April 30, 2018 but excluding May 1, 2028, computed on the basis of a 360-day year consisting of twelve 30-day months, payable quarterly in arrears on February 1, May 1, August 1 and November 1 of each year. From and including May 1, 2028 to but excluding the maturity date or early redemption date, the interest rate for the 15-Year Notes shall reset quarterly to an interest rate equal to the then-current three-month LIBOR rate plus 339 basis points, computed on the basis of a 360-day year and the actual number of days elapsed, payable quarterly in arrears on February 1, May 1, August 1, and November 1. The Company intends to use the net proceeds from the sale of the Notes for general corporate purposes, which may include increasing bank level capital ratios to support future growth, repaying an existing line of credit and establishing holding company reserves.
The First Bancshares, Inc. is a bank holding company for The First Bank (the First). The Company is a community-focused financial institution that offers a full range of financial services to individuals, businesses, municipal entities and nonprofit organizations in the communities that it serves. These services include consumer and commercial loans, deposit accounts and safe deposit services. It offers a full range of deposit services that are available in banks and savings institutions, including checking accounts, NOW accounts, savings accounts, and other time deposits of various types, ranging from daily money market accounts to longer-term certificates of deposit. It offers a full range of commercial and personal loans. Commercial loans include both secured and unsecured loans for working capital, business expansion, purchase of equipment and machinery, and others. Its segments include the Commercial/Retail Bank, the Mortgage Banking Division, and the Holding Company.
The First Bancshares, Inc. Issues $24 Million in Aggregate Principal Amount of 5.875% Fixed-To-Floating Rate Subordinated Notes Due 2028 and $42 Million in Aggregate Principal Amount of 6.40% Fixed-To-Floating Rate Subordinated Notes Due 2033