FVCBankcorp, Inc. Announces Completion of $20 Million Subordinated Notes Offering
October 13 2020 - 3:23PM
Business Wire
FVCBankcorp, Inc. (NASDAQ:FVCB) (the “Company”) today announced
the completion of its private placement of $20 million of its
4.875% Fixed to Floating Rate Subordinated Notes due 2030 (the
“Notes”) to certain qualified institutional buyers and accredited
investors.
“We are extremely pleased with the success of this transaction,”
said David W. Pijor, Chairman and CEO of the Company. “This
offering was oversubscribed which demonstrates the confidence our
investors have in our continued success. The additional capital
this provides allows us to be supportive of the communities we
serve through continued organic and strategic growth of the
Company.”
The Notes have a maturity date of October 15, 2030 and carry a
fixed rate of interest of 4.875% for the first five years.
Thereafter, the Notes will pay interest at 3-month SOFR plus 471
basis points, resetting quarterly. The Notes include a right of
prepayment without penalty on or after October 15, 2025. The Notes
have been structured to qualify as Tier 2 capital for regulatory
purposes.
The Company plans to use the proceeds from the placement of the
Notes for general corporate purposes, to include supporting capital
ratios at the Company’s subsidiary, FVCbank, and potential
repayment of a portion or all of the $25.0 million outstanding
subordinated debt callable June 30, 2021.
Piper Sandler & Co. served as the sole placement agent for
the offering. Williams Mullen served as legal counsel to the
Company and Troutman Pepper Hamilton Sanders LLP served as legal
counsel to the placement agent.
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 by 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 Notes have not been registered under the
Securities Act and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements. The indebtedness evidenced by the Notes is not a
deposit and is not insured by the Federal Deposit Insurance
Corporation or any other government agency or fund.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a
wholly-owned subsidiary that commenced operations in November 2007.
FVCbank is a $1.78 billion asset-sized Virginia-chartered community
bank serving the banking needs of commercial businesses, nonprofit
organizations, professional service entities, their owners and
employees located in the greater Baltimore and Washington D.C.,
metropolitan areas. FVCbank is based in Fairfax, Virginia, and has
9 full-service offices in Arlington, Fairfax, Manassas, Reston and
Springfield, Virginia, Washington D.C., and Baltimore, Bethesda,
and Rockville, Maryland.
For more information on the Company’s selected financial
information, please visit the Investor Relations page of
FVCBankcorp, Inc.’s website, www.fvcbank.com.
Caution about Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited, statements of
goals, intentions, and expectations as to future trends, plans,
events or results of the Company’s operations and policies and
regarding general economic conditions. In some cases,
forward-looking statements can be identified by use of words such
as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,”
“estimates,” “potential,” “continue,” “should,” and similar words
or phrases. These statements are based upon current and anticipated
economic conditions, nationally and in the Company’s market,
interest rates and interest rate policy, competitive factors, and
other conditions which by their nature, are not susceptible to
accurate forecast and are subject to significant uncertainty.
Because of these uncertainties and the assumptions on which this
discussion and the forward-looking statements are based, actual
future operations and results in the future may differ materially
from those indicated herein. These forward-looking statements are
based on current beliefs that involve significant risks,
uncertainties, and assumptions. Factors that could cause the
Company’s actual results to differ materially from those indicated
in these forward-looking statements, include, but are not limited
to, the risk factors and other cautionary language included in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2019 and in other periodic and current reports filed with the
Securities and Exchange Commission. Because of these uncertainties
and the assumptions on which the forward-looking statements are
based, actual operations and results in the future may differ
materially from those indicated herein. Readers are cautioned
against placing undue reliance on any such forward-looking
statements. The Company’s past results are not necessarily
indicative of future performance.
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version on businesswire.com: https://www.businesswire.com/news/home/20201013006058/en/
David W. Pijor, Chairman and Chief Executive Officer Phone:
(703) 436-3802 Email: dpijor@fvcbank.com Patricia A. Ferrick,
President Phone: (703) 436-3822 Email: pferrick@fvcbank.com
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