Patriot National Bancorp Inc., the parent company of Patriot Bank, has completed the private placement of $10 million in fixed-to-floating rate subordinated notes due 2028.
The Stamford firm said that a material portion of the proceeds from the sale of the notes will be down-streamed to Patriot as regulatory capital, which will be used for financing of its pending acquisition of Hana Small Business Lending and for general corporate purposes.
The notes will initially bear interest at 6.25 percent per year, from June 29 of this year through June 29, 2023, payable semiannually in arrears. From June 30, 2023, through June 29, 2028, or up to an early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 332.5 basis points, payable quarterly in arrears.
Beginning on June 30, 2023, through maturity, the notes may be redeemed, at Patriot’s option, on any scheduled interest payment date. The notes will mature on June 30, 2028.
Patriot also announced its entry into the 2018 Russell Microcap Index, which was reconstituted last month.