Brooklyn, N.Y.-based Dime Community Bancshares Inc. priced an underwritten public offering of $115 million aggregate principal amount of its fixed-to-floating rate subordinated notes due June 15, 2027, according to a June 8 press release.
The notes will initially bear a fixed interest rate of 4.50% per year. Starting June 15, 2022, the interest rate will reset on a quarterly basis to the three-month London Interbank Offered Rate rate plus a spread of 266 basis points, payable quarterly in arrears.
Net proceeds from the offering will be used to redeem the $70.7 million of trust preferred securities currently paying a 7.00% annual coupon of Dime Community Capital Trust I. The remaining portion will be used for general corporate purposes, including payment of dividends and funding potential strategic growth opportunities.
The offering is expected to close June 13.
Sandler O'Neill & Partners LP serves as the sole book-running manager for the offering, while Piper Jaffray & Co. serves as co-manager. Luse Gorman PC is acting as outside legal counsel to the company, while Kilpatrick Townsend & Stockton LLP is acting as outside legal counsel to the underwriters.