Codorus Valley Bancorp, Inc. Completes $31.0 Million Subordinated Debt Offering
December 09 2020 - 4:45PM
Codorus Valley Bancorp, Inc. (“Codorus Valley” or the “Company”)
(NASDAQ: CVLY), the parent company for PeoplesBank, A Codorus
Valley Company (“PeoplesBank”), which is the parent company of
PeoplesWealth Advisors, today announced the completion of a private
placement of $31.0 million in aggregate principal amount of 4.50%
Fixed-to-Floating Rate Subordinated Unsecured Notes due 2030 (the
“Notes”). The Company intends to utilize the net proceeds for
general corporate purposes.
“We are pleased to announce the successful
completion of our subordinated debt offering under favorable terms.
This debt offering will strengthen the Company’s already strong
capital position, provide additional flexibility as we grow our
franchise and it will enhance our ability to execute on our
long-term business strategies,” said Larry J. Miller, Chairman,
President and Chief Executive Officer of Codorus
Valley.
The Notes are structured to qualify as Tier 2
capital for Codorus Valley for regulatory capital purposes. The
Notes will initially bear a fixed interest rate of 4.50% until
December 2025, after which time until maturity on December 9, 2030,
the interest rate will reset quarterly to an annual floating rate
equal to 90-day average SOFR (Secured Overnight Financing Rate)
plus 404 basis points. The Notes are redeemable by the Company at
its option, in whole or in part, on or after December 9, 2025. Any
redemption will be at a redemption price equal to 100% of the
principal amount of the Notes being redeemed, plus accrued and
unpaid interest. The Notes are not subject to redemption at the
option of the holders.
Boenning & Scattergood, Inc. served as the
sole placement agent for the offering. Stevens & Lee, P.C.
served as legal counsel to Codorus Valley and Barley Snyder served
as legal counsel to the placement agent.
The offer and sale of the Notes has 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 is for informational
purposes only and shall not constitute an offer to sell, or the
solicitation of an offer to buy, any security, nor shall there be
any sale in any jurisdiction in which such an offer, solicitation,
or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction. The indebtedness
evidenced by the unsecured Notes is not a deposit and is not
insured by the Federal Deposit Insurance Corporation or any other
government agency or fund.
The Company
With $2.1 billion in assets, Codorus Valley is
the largest independent financial services holding company
headquartered in York, Pennsylvania. Codorus Valley primarily
operates through its financial services subsidiary,
PeoplesBank. PeoplesBank offers a full range of consumer,
business, wealth management, and mortgage services at financial
centers located in communities throughout South Central
Pennsylvania and Central Maryland. Codorus Valley’s Common Stock is
listed on the NASDAQ Global Market under the symbol CVLY.
Forward-looking Statements
Codorus Valley has made forward-looking
statements in this Press Release. These forward-looking
statements are subject to risks and uncertainties.
Forward-looking statements include information concerning possible
or assumed future results of operations of the Company and its
subsidiaries. When words such as “believes,” “expects,”
“anticipates,” or similar expressions occur in this Press Release,
the Company is making forward-looking statements. Note that
many factors could affect the future financial results of the
Company and its subsidiaries, both individually and collectively,
and could cause those results to differ materially from those
expressed in the forward-looking statements contained in this Press
Release. Those factors include, but are not limited to: the recent
and continuing coronavirus (COVID-19) pandemic which poses risks
and may harm the Company’s business and results of operations in
future quarters, credit risk, changes in market interest rates,
inability to achieve merger-related synergies, competition,
economic downturn or recession, and government regulation and
supervision. The Company provides greater detail regarding
these as well as other factors in its 2019 Form 10-K and 2020 Form
10-Qs, including Risk Factors sections of those reports, and in its
subsequent SEC filings. The Company undertakes no obligation
to update or revise any forward-looking statements.
Questions or comments concerning this
Press Release should be directed to:
Codorus Valley Bancorp,
Inc.
Larry J.
Miller
Chairman, President and
CEO
717-747-1500
lmiller@peoplesbanknet.com
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