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Heartland BancCorp Announces Completion of $25 Million Subordinated Notes Offering

Written by Customer Service on . Posted in Public Companies.

WHITEHALL, Ohio, May 15, 2020 (GLOBE NEWSWIRE) — Heartland BancCorp (“the Company” or “Heartland”) (OTCQX: HLAN) today announced the completion of its private placement of $25 million of 5.0% fixed-to-floating rate subordinated notes due 2030 (the “Notes”) to certain qualified institutional buyers and accredited investors, including the exchange of approximately $5.4 million of the Company’s subordinated promissory notes due 2025. The Notes will initially bear interest at a fixed annual rate of 5.0%, payable semiannually in arrears, to, but excluding, June 15, 2025, and will reset quarterly thereafter to the then current three-month SOFR plus a spread of 490.0 basis points, payable quarterly in arrears, commencing September 15, 2025. Heartland may redeem the Notes on or after June 15, 2025, or at any time upon certain other specified events. The Notes have been structured to qualify as Tier 2 capital for Heartland for regulatory capital purposes. Heartland intends to use the net proceeds of the offering for general corporate purposes, including repaying indebtedness, to support organic growth and to fund potential acquisitions.
“This successful capital raise gives us an opportunity to build out our business plan and is an affirmation of Heartland’s tremendous opportunities in our market,” stated G. Scott McComb, Chairman and Chief Executive Officer. “Through the issuance of these Notes, we have cost effectively increased our capital levels without diluting our current shareholders.”D.A. Davidson & Co. acted as placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to Heartland, and Squire Patton Boggs (US) LLP served as legal counsel to D.A. Davidson & Co. 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 of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from the 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 Heartland BancCorp

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