Houston-based Allegiance Bank on Dec. 14 closed a private placement of $40.0 million of its fixed- to floating-rate subordinated notes.
The notes are due Dec. 15, 2027. They will pay interest of 5.25% per annum until Dec. 15, 2022, from which time the interest rate will instead equal three-month London Interbank Offered Rate plus 3.03%.
Net proceeds are estimated at $39.4 million.
The bank intends to use the net proceeds from the offering to support its growth and for general corporate purposes.