Lake City, Fla.-based First Federal Bancorp Inc. on Dec. 27 completed the issuance of $30.0 million in 10-year fixed-to-floating rate subordinated notes.
The subordinated debt is structured such that it qualifies as Tier 2 capital at the holding company.
The notes will initially bear interest at 6.125% annually through Dec. 27, 2023, and thereafter pay an annual floating rate equal to three-month LIBOR plus 326.7 basis points.
First Federal plans to use the net proceeds from the debt offering for general corporate purposes, including to strengthen its capital ratios and improve its capital structure flexibility to support First Federal Bank's continued growth.
Performance Trust Capital Partners served as sole placement agent for First Federal in connection with the subordinated debt issuance.