First Business Financial Services, Inc. Completes $15.0 Million Subordinated Debt Offering
October 04 2023 - 4:30PM
Business Wire
First Business Financial Services, Inc. (the “Company”, the
“Bank”, or “First Business Bank”) (Nasdaq: FBIZ) announced the
completion of a private placement of $15.0 million in aggregate
principal amount of 8.0% Subordinated Debentures due September 29,
2033 (the “Notes”) to certain of the Bank’s local community
investors and other "accredited investors” (as defined under
applicable securities regulations) on September 29, 2023. The
Company intends to use the net proceeds of the offering for general
corporate purposes, including support of the Bank’s growth
strategy.
The Notes were structured to qualify as Tier 2 capital for
regulatory risk-based capital purposes and bear interest at a fixed
annual rate of 8.0%, payable quarterly, in arrears, beginning
December 15, 2023. The Notes’ maturity date is September 29, 2033.
The Company is entitled to redeem the Notes, in whole or in part,
at any time after September 29, 2028, and to redeem the Notes at
any time in whole upon certain other events, at a redemption price
equal to 100% of the outstanding principal amount of the Notes to
be redeemed plus any accrued and unpaid interest up to, but
excluding, the redemption date.
“We continue to focus on executing our proven strategy of
achieving double-digit revenue growth, driven by like-sized and
diversified loan and deposit growth, and our increased capital
position will allow us to continue on that path,” Chief Executive
Officer Corey Chambas said. “We are pleased to have the
enthusiastic support of local investors, whose participation
reflects the distinctive depth and strength of First Business
Bank’s community relationships.”
Godfrey & Kahn, S.C. served as legal counsel to the
Company.
About First Business Bank
First Business Bank® specializes in Business Banking, including
Commercial Banking and Specialty Finance, Private Wealth, and Bank
Consulting services, and through its refined focus delivers
unmatched expertise, accessibility, and responsiveness. Specialty
Finance solutions are delivered through First Business Bank’s
wholly owned subsidiary First Business Specialty Finance, LLC®.
First Business Bank is a wholly owned subsidiary of First Business
Financial Services, Inc®. (Nasdaq: FBIZ). For additional
information, visit firstbusiness.bank.
This press release includes “forward-looking” statements related
to First Business Financial Services, Inc. that can generally be
identified as describing the Company’s future plans, objectives or
goals. Such forward-looking statements are subject to risks and
uncertainties that could cause actual results or outcomes to differ
materially from those currently anticipated. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. For further
information about the factors that could affect the Company’s
future results, please see the Company’s 2022 annual report on Form
10-K, quarterly reports on Form 10-Q and other filings with the
Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20231004850822/en/
Brian D. Spielmann Chief Financial Officer First Business
Financial Services, Inc. 608-232-5970
bspielmann@firstbusiness.bank
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