Sierra Bancorp Completes Private Placement of $50 Million of Subordinated Notes
September 24 2021 - 5:00PM
Business Wire
Sierra Bancorp (Nasdaq: BSRR) (the “Company”), the holding
company for Bank of the Sierra, today announced the completion of
its private placement of $50 million in fixed-to-floating rate
subordinated notes due 2031 (the “Notes”).
The Notes are intended to qualify as Tier 2 capital for
regulatory purposes. The Notes will bear interest at a fixed annual
rate of 3.25% for the first five years and will reset quarterly
thereafter to the then current three-month Secured Overnight
Financing Rate (SOFR) plus 253.5 basis points. Kroll Bond Rating
Agency assigned an investment grade rating of BBB- to the Notes.
The subordinated notes are redeemable by the Company at its option,
in whole or in part, on or after October 1, 2026.
The Company intends to use the net proceeds from the offering
for general corporate purposes.
Keefe, Bruyette & Woods, A Stifel Company, served as sole
placement agent for the Notes offering. Stuart | Moore | Staub
served as legal counsel to the Company, and Squire Patton Boggs
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, the Notes, nor shall there be any offer, solicitation or 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 any 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 Sierra Bancorp
Sierra Bancorp is the holding company for Bank of the Sierra
(www.bankofthesierra.com), which is in its 44th year of operations
and is the largest independent bank headquartered in the South San
Joaquin Valley. Bank of the Sierra is a community-centric regional
bank, which offers a broad range of retail and commercial banking
services through full-service branches located within the counties
of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo and Santa
Barbara. The Bank also maintains an online branch and provides
specialized lending services through an agricultural credit center,
an SBA center and a dedicated loan production office in Roseville,
California. In 2021, Bank of the Sierra was recognized as one of
the strongest and top-performing community banks in the country,
with a 5‑star rating from Bauer Financial.
Forward Looking Statements “Safe Harbor” Statement Under the
Private Securities Litigation Reform Act of 1995
The statements contained in this release that are not historical
facts are forward-looking statements based on management's current
expectations and beliefs concerning future developments and their
potential effects on the Company. Readers are cautioned not to
unduly rely on forward looking statements. Actual results may
differ from those projected. These forward-looking statements
involve risks and uncertainties including but not limited to our
borrowers’ actual payment performance as loan deferrals related to
the COVID-19 pandemic expire, changes to statutes, regulations, or
regulatory policies or practices as a result of, or in response to
the COVID-19 pandemic, including the potential adverse impact of
loan modifications and payment deferrals implemented consistent
with recent regulatory guidance, and the general economic
uncertainty caused by the COVID-19 pandemic, and government and
societal responses thereto, the health of the national and local
economies, the Company's ability to attract and retain skilled
employees, customers' service expectations, the Company's ability
to successfully deploy new technology, the success of acquisitions
and branch expansion, changes in interest rates, loan portfolio
performance, and other factors detailed in the Company's SEC
filings, including the "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations"
sections of the Company's most recent Form 10 K and Form 10 Q. Any
forward-looking statements presented herein are made only as of the
date of this press release, and we do not undertake any obligation
to update or revise any forward-looking statements to reflect
changes in assumptions, the occurrence of unanticipated events, or
otherwise, except as required by law.
An explanation of the significance of ratings may be obtained
from the rating agency. Generally, rating agencies base their
ratings on such material and information, and such of their own
investigations, studies and assumptions, as they deem appropriate.
The rating of the subordinated notes should be evaluated
independently from similar ratings of other securities. A credit
rating of a security is not a recommendation to buy, sell or hold
securities and may be subject to review, revision, suspension,
reduction or withdrawal at any time by the assigning rating agency.
No report of any rating agency is incorporated by reference
herein.
Category: Financial Source: Sierra Bancorp
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version on businesswire.com: https://www.businesswire.com/news/home/20210924005543/en/
Mr. Kevin McPhaill – President & Chief Executive Officer
Phone: (559) 782‑4900 or (888) 454‑BANK www.sierrabancorp.com
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