BIRMINGHAM, Ala., Aug. 19, 2022 /PRNewswire/ — Oakworth Capital, Inc. (“Oakworth” or the “Company”), the parent company of Oakworth Capital Bank, today announced the completion of its private placement of $35.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due September 1, 2032 (the “Notes”).
The Notes will bear interest at a fixed annual rate of 6.00% for the first five years and will reset quarterly thereafter to the then-current three-month term Secured Overnight Financing Rate (“SOFR”) plus 327 basis points. The Notes were offered and sold to certain qualified institutional buyers and institutional accredited investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and Regulation D thereunder.
The Company intends to use the net proceeds from the offering for general corporate purposes, including investment in Oakworth Capital Bank to fund growth. The Company is entitled to redeem the Notes, in whole or in part, beginning on the fifth anniversary of the date the Notes were issued, and on any interest payment date thereafter, and to redeem the Notes at any time in whole upon certain other specified events.
Chairman, President and Chief Executive Officer Scott Reed said, “We are thrilled to announce the successful completion of our subordinated debt offering. To have the substantial support of the institutional investment community in the Oakworth story only validates our values, vision and the execution of our business model. We plan to utilize this capital by continuing to serve our clients and enhancing our organic growth.”
Keefe, Bruyette & Woods, A Stifel Companyserved as sole placement agent. Covington & Burling LLP served as legal counsel to the placement agent and Maynard, Cooper & Gale, PC served as legal counsel to the Company.
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 offer, solicitation, or 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 any such jurisdiction. The Notes have not …