Northeast Bancorp Closed Private Placement of $15.05 million of Subordinated Notes Due 2026
June 29 2016 - 5:24PM
Northeast Bancorp (NASDAQ:NBN) (the “Company”), a Maine-based
full-service financial services company and parent of Northeast
Bank, announced today it has completed a private placement of
$15,050,000 in aggregate principal amount of fixed-to-floating rate
subordinated notes (the “Notes”) to certain qualified institutional
investors. Unless earlier redeemed, the Notes mature on July 1,
2026.
The Notes were designed to qualify as Tier 2
capital under the Federal Reserve’s capital guidelines. The Company
intends to use the net proceeds of the offering for general
corporate purposes, including loan growth, additional liquidity and
working capital.
“This offering allows us to diversify our capital
mix with a source of non-dilutive, low-cost capital,” stated
Richard Wayne, President and Chief Executive Officer of the
Company. “The proceeds of the offering will allow us to continue to
implement our growth strategy and to better serve the diverse
financial needs of our customer base.”
The Notes sold in the offering have not been
registered under the Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or
an applicable exemption from the registration requirements. This
press release does not constitute an offer to sell, or the
solicitation of an offer to buy, any security and will not
constitute an offer or solicitation in any jurisdiction in which
such offering would be unlawful.
Sandler O’Neill & Partners, L.P. served as the
exclusive placement agent for the private offering. Goodwin Procter
LLP served as legal counsel for the Company, and Nutter McClennen
& Fish LLP served as placement agent’s counsel.
About Northeast Bancorp
Northeast Bancorp (NASDAQ:NBN) is the holding
company for Northeast Bank, a full-service bank headquartered
in Lewiston, Maine. We offer traditional banking services
through the Community Banking Division, which operates ten
full-service branches that serve customers located in western,
central, and southern Maine. From
our Maine and Boston locations, we also lend
throughout the New England area. Our Loan
Acquisition and Servicing Group ("LASG") purchases and
originates commercial loans on a nationwide basis. In addition, our
SBA National Division supports the needs of growing businesses
nationally. ableBanking, a Division of Northeast Bank, offers
savings products to consumers online. Information
regarding Northeast Bank can be found on its website at
www.northeastbank.com.
Forward-Looking
Statements
Statements in this press release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and
are intended to be covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Although the
Company believes that these forward-looking statements are based on
reasonable estimates and assumptions, they are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, and other factors. You should not place undue
reliance on the Company’s forward-looking statements. You should
exercise caution in interpreting and relying on forward-looking
statements because they are subject to significant risks,
uncertainties and other factors which are, in some cases, beyond
the Company's control. The Company's actual results could differ
materially from those projected in the forward-looking statements
as a result of, among other factors, changes in interest rates and
real estate values; competitive pressures from other financial
institutions; the effects of weakness in general economic
conditions on a national basis or in the local markets in which the
Company operates, including changes which adversely affect
borrowers' ability to service and repay the Company’s loans;
changes in loan defaults and charge-off rates; changes in the value
of securities and other assets, adequacy of loan loss reserves, or
deposit levels necessitating increased borrowing to fund loans and
investments; changing government regulation; the risk that the
Company may not be successful in the implementation of its business
strategy; the risk that intangibles recorded in the Company's
financial statements will become impaired; changes in assumptions
used in making such forward-looking statements; and the other risks
and uncertainties detailed in the Company's Annual Report on Form
10-K and updated by the Company's Quarterly Reports on Form 10-Q
and other filings submitted to the Securities and Exchange
Commission. These statements speak only as of the date of this
release and the Company does not undertake any obligation to update
or revise any of these forward-looking statements to reflect events
or circumstances occurring after the date of this communication or
to reflect the occurrence of unanticipated events.
For More Information:
Richard Wayne, President and CEO
Northeast Bank, 500 Canal Street, Lewiston, ME 04240
207.786.3245 ext. 3203
www.northeastbank.com
Northeast Bank (NASDAQ:NBN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Northeast Bank (NASDAQ:NBN)
Historical Stock Chart
From Apr 2023 to Apr 2024