First Gothenburg Bancshares Inc. on Oct. 2 completed the issuance of $12.0 million in 10-year fixed-to-floating rate subordinated notes due October 2029.
The notes will initially bear interest at 6.125% per year through Oct. 2, 2024, and thereafter pay a quarterly floating rate equal to three-month London interbank offered rate plus 462 basis points.
The Gothenburg, Neb.-based company plans to use the net proceeds for general corporate purposes, including strengthening its capital ratios and improving its capital structure flexibility to support its unit First State Bank's growth.
Performance Trust Capital Partners LLC served as the sole placement agent in the issuance of the debt.
