Horicon, Wis.-based Sword Financial Corp. on Dec. 27 completed the issuance of $10.0 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 6.50% annually through Dec. 27, 2023. Thereafter, the notes will pay an annual floating rate equal to three-month LIBOR plus 376 basis points.
Sword Financial plans to use the net proceeds from the offering for general corporate purposes, including to strengthen its capital ratios and improve its capital structure flexibility to support Horicon Bank's continued growth.
Performance Trust Capital Partners served as sole placement agent for Sword Financial in connection with the offering.