Eureka, Calif.-based Redwood Capital Bancorp on Sept. 25 issued $9.0 million of 10-year fixed- to floating-rate subordinated notes.
The notes will bear annual interest of 5.25% through Sept. 25, 2024, and will then change to a quarterly floating rate equal to the three-month London interbank offered rate plus 312 basis points.
Redwood Capital Bancorp intends to use net proceeds to replace around $4 million of senior debt and for general corporate purposes, which include strengthening capital ratios and improving capital structure flexibility.
Performance Trust Capital Partners was sole placement agent of the offering.
