Malvern, Pa.-based Meridian Corp. completed its offering of $40 million in fixed-to-floating-rate subordinated notes due 2029 in a private placement transaction.
The notes will initially bear interest at a fixed annual rate of 5.375% for five years and will reset quarterly thereafter to the then-current three-month secured overnight financing rate plus 395 basis points.
The company may redeem the notes on or after Dec. 30, 2024, or at any time upon certain other specified events.
Net proceeds will be used for general corporate purposes, including organic growth and the repayment of a portion of unit Meridian Bank's existing indebtedness.
Sandler O'Neill & Partners LP was lead placement agent, and D.A. Davidson & Co. was the co-placement agent for the offering. Stradley Ronon Stevens & Young LLP was legal counsel to Meridian Corp. Silver Freedman Taff & Tiernan LLP was legal counsel to the placement agents.