Co-Manager
Preferred Bank
Debt Capital Markets
Subordinated Notes
Transaction Details
- On June 15, 2021, Preferred Bank (NASDAQ: PFBC) (“Preferred”) completed its $150 million private placement of Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”)
- The Notes bear a fixed rate of 3.375% per year for the first 5 years and then reset quarterly at a variable rate equal to the then current three-month term SOFR plus 278 basis points
- Kroll Bond Rating Agency assigned a rating of BBB+ to the Notes
- Preferred intends to use the net proceeds from the issuance of the Notes to redeem its $100 million of 6.00% fixed to float rate subordinated notes due 2026, including interest accrued on such notes, and for general corporate purposes, including funding loans and purchasing investment securities for its portfolio
About the company
Preferred commenced operations in 1991 and is one of the larger independent commercial banks headquartered in Southern California focusing on the diversified California market. As of March 31, 2021, Preferred operated ten branches in Southern California, two branches in San Francisco, and one branch in Flushing, New York.
Source: Company Filings.
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