Rockland, Mass.-based Independent Bank Corp. issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes in a private placement transaction to institutional accredited investors.
The notes will mature March 15, 2029.
Interest on the notes is payable semiannually in arrears, at a rate of 4.75% per annum, from and including March 14, 2019, to but excluding March 15, 2024, or any early redemption date.
From March 15, 2024, to but excluding the maturity date, the interest rate will be reset quarterly to an interest rate equal to the then current three-month LIBOR plus 219 basis points, payable quarterly in arrears.
Independent Bank plans to use the net proceeds for general corporate purposes, which may include acquisitions, the redemption of outstanding debt and financing organic growth.
Sandler O'Neill & Partners LP and US Bancorp Investments Inc. served as placement agents for the private placement.