Pinnacle Bankshares Corporation Announces Completion of $8.0 Million Subordinated Notes Offering
September 21, 2020 at 05:01 pm
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Pinnacle Bankshares Corporation announced that it has completed a private placement of $8.0 million in fixed-to-floating rate subordinated notes due 2030. The Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines, and the proceeds from the sale of the Notes will be utilized to pay a portion of the cash consideration to be paid by the Company in connection with its pending merger with Virginia Bank Bankshares Inc., if consummated, and to provide optionality for various growth opportunities and for general corporate purposes. In connection with the Notes offering, the Company was advised by Performance Trust Capital Partners, LLC as placement agent and Troutman Pepper Hamilton Sanders LLP as legal counsel. Wyrick Robbins Yates & Ponton LLP served as legal counsel to the placement agent. The Notes will initially bear interest at 5.25% per annum, beginning September 18, 2020 to but excluding September 30, 2025, payable quarterly in arrears. From September 30, 2025 to but excluding September 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 513 basis points, payable quarterly in arrears. Beginning on September 30, 2025 through maturity, the Notes may be redeemed, at the Company’s option and subject to any required regulatory approval, on any scheduled interest payment date. The Notes will mature on September 30, 2030. The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security.
Pinnacle Bankshares Corporation is a bank holding company. The Company operates its business activities through its wholly owned subsidiary, First National Bank (The Bank). The Bank offers a range of commercial and retail banking products and services, including checking, savings and time deposits, individual retirement accounts, online banking, mobile banking, remote deposit capture, merchant bankcard processing, residential and commercial mortgages, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial loans, lines of credit and letters of credit. It also offers a full range of investment, insurance and annuity products. The Bank serves market areas consisting primarily of all or portions of the Counties of Amherst, Bedford, Campbell and Pittsylvania, and the Cities of Charlottesville, Danville and Lynchburg. The Company has over 18 branches. The Bankâs subsidiaries include FNB Property Corp. and First Properties, Inc.