Jeff Davis Bancshares, Inc. (OTCPK:JDVB) announced a private placement of fixed-to-floating rate subordinated notes for gross proceeds of $17,500,000 on January 11, 2017. The notes have a maturity date of January 15, 2027 and carry a fixed rate of interest of 6.75% for the first five years. Thereafter, the notes will carry interest at London Inter Bank Offered Rate plus 469 basis points. The notes include a right of prepayment, without penalty, on or after January 15, 2022. The subordinated notes have been structured to qualify as Tier 2 capital for regulatory purposes. The transaction included participation from 8 investors.