Farmington Hills, Mich.-based Level One Bancorp Inc. issued $30.0 million of fixed-to-floating rate subordinated notes due Dec. 18, 2029, in a private placement.
The notes will initially bear interest at a fixed annual rate of 4.75%. The notes will bear interest at a floating rate starting Dec. 18, 2024, to, but excluding, the maturity date and will reset quarterly. Level One Bancorp can redeem the notes in whole or in part on any interest payment date on or after Dec. 18, 2024. The company can also fully redeem the notes upon the occurrence of certain other events.
The company intends to use net proceeds from the offering for general corporate purposes, which include partially funding its acquisition of Michigan-based Ann Arbor State Bank.
Performance Trust Capital Partners LLC was the placement agent for the offering. Barack Ferrazzano Kirschbaum & Nagelberg LLP provided legal counsel to Level One Bancorp.