Bay Banks of Virginia, Inc. (OTCPK:BAYK) announced that it has entered into subordinated note purchase agreements for a private placement of non-convertible 5.625% fixed-to-floating rate subordinated notes due 2029 for gross proceeds of $25,000,000 on October 7, 2019. The notes are issued at par. The transaction included participation from 10 accredited investors. The notes will initially bear interest at 5.625% per annum, beginning October 7, 2019 to but excluding October 15, 2024, payable semi-annually in arrears. From and including October 15, 2024 through October 14, 2029, or up to an 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 plus 433.5 basis points, payable quarterly in arrears. Beginning on October 15, 2024 through maturity, the notes are redeemable, at the company’s option, on any scheduled interest payment date. The notes are unsecured, subordinated and will mature on October 15, 2029. The company will issue securities pursuant to exemption provided under Regulation D.