Capital Funding Bancorp, Inc. (the “Company”), the holding company of CFG Bank (the “Bank”), announced the closing of its private placement of $30 million aggregated principal amount 3.875% Fixed-to-Floating Rate Subordinated Notes (the “Notes”) to certain qualified institutional buyers. The Notes will mature on June 1, 2031 and will initially bear interest at a rate equal to 3.875% per annum. Thereafter, the Notes will bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 318 basis points.
The Company intends to use the net proceeds from this offering for general corporate purposes, including supporting the Bank’s capital requirements, the underwriting of the organic growth of the Bank and making strategic holding company investments.
CFG Bank President and Chief Executive Officer Bill Wiedel stated, “We are very pleased to announce the successful completion of the subordinated debt offering under favorable terms. This new capital will allow the Company and CFG Bank to continue its growth trajectory as it focuses on serving its Mid-Atlantic-based commercial clients and nationally-based healthcare clients.”
Keefe Bruyette & Woods, A Stifel Company acted as the sole placement agent for the Notes. Bybel Rutledge LLP served as counsel to the Company. Squire Patton Boggs (US) LLP served as legal counsel to the placement agent.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.