Brentwood, Tenn.-based Reliant Bancorp Inc. issued and sold $60 million aggregate principal amount of fixed-to-floating rate subordinated notes due Dec. 15, 2029, to certain qualified institutional buyers and institutional accredited investors in a private placement transaction.
The company intends to use the net proceeds from the offering to pay cash consideration for pending acquisitions, to support organic growth, including maintenance of bank level capital ratios, and for general corporate purposes.
The notes are intended to qualify as Tier 2 capital for regulatory capital purposes for Reliant Bancorp. These will initially bear interest at a fixed annual rate of 5.125%, payable semiannually in arrears, to but excluding Dec. 15, 2024. From and including Dec. 15, 2024, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to the then-current three-month secured overnight financing rate provided by the Federal Reserve Bank of New York, plus 376.5 basis points, payable quarterly in arrears.
Reliant Bancorp may redeem the notes, in whole or in part, on any interest payment date on or after Dec. 15, 2024, and at any time in whole upon certain events.
The notes were issued under an indenture between the company and UMB Bank NA, as trustee.
Sandler O'Neill & Partners LP served as lead placement agent, and Hovde Group LLC and Keefe Bruyette & Woods Inc. acted as co-placement agents for the offering. Butler Snow LLP served as legal counsel to Reliant Bancorp, and Baker Donelson Bearman Caldwell & Berkowitz PC acted as legal counsel to the placement agents.