Chesapeake Financial Shares, Inc. Announces Completion of Offering of $25 Million of Subordinated Notes
Chesapeake Financial Shares (CPKF) has successfully completed a $25 million private placement of fixed-to-floating rate subordinated notes. The offering, which was significantly oversubscribed, demonstrates strong investor demand and favorable pricing conditions.
The notes will initially carry an 8.00% interest rate from February 28, 2025, to March 1, 2030, paid semi-annually. After March 2030, the rate will reset quarterly to three-month SOFR plus 394 basis points until maturity on March 1, 2035.
The notes qualify as Tier 2 capital for the company and can be contributed as Tier 1 capital to Chesapeake Bank. Proceeds will support general corporate purposes, including:
- Growth opportunities
- Partial repositioning of the Bank's investment portfolio
- Opportunistic common share repurchases
Chesapeake Financial Shares (CPKF) ha completato con successo un collocamento privato di 25 milioni di dollari di obbligazioni subordinate a tasso fisso e variabile. L'offerta, che è stata significativamente sovrascritta, dimostra una forte domanda da parte degli investitori e condizioni di prezzo favorevoli.
Le obbligazioni porteranno inizialmente un tasso d'interesse dell'8,00% dal 28 febbraio 2025 al 1 marzo 2030, pagato semestralmente. Dopo marzo 2030, il tasso si resetterà trimestralmente a SOFR a tre mesi più 394 punti base fino alla scadenza del 1 marzo 2035.
Le obbligazioni qualificano come capitale di livello 2 per la società e possono essere contribuite come capitale di livello 1 a Chesapeake Bank. I proventi sosterranno scopi aziendali generali, tra cui:
- Opportunità di crescita
- Parziale riposizionamento del portafoglio di investimenti della Banca
- Riacquisti opportunistici di azioni ordinarie
Chesapeake Financial Shares (CPKF) ha completado con éxito una colocación privada de 25 millones de dólares de notas subordinadas de tasa fija a variable. La oferta, que fue significativamente sobreecrita, demuestra una fuerte demanda de los inversores y condiciones de precios favorables.
Las notas llevarán inicialmente una tasa de interés del 8,00% desde el 28 de febrero de 2025 hasta el 1 de marzo de 2030, pagada semestralmente. Después de marzo de 2030, la tasa se reajustará trimestralmente a SOFR a tres meses más 394 puntos básicos hasta el vencimiento el 1 de marzo de 2035.
Las notas califican como capital de nivel 2 para la empresa y pueden ser aportadas como capital de nivel 1 a Chesapeake Bank. Los ingresos apoyarán propósitos corporativos generales, incluyendo:
- Oportunidades de crecimiento
- Reubicación parcial de la cartera de inversiones del Banco
- Recompras oportunistas de acciones comunes
체사피크 파이낸셜 쉐어스 (CPKF)는 2,500만 달러 규모의 사모 발행을 성공적으로 완료했습니다. 고정에서 변동 금리로 전환되는 이 채권은 크게 초과 구독되어 투자자들의 강한 수요와 유리한 가격 조건을 보여줍니다.
채권은 2025년 2월 28일부터 2030년 3월 1일까지 8.00%의 이자율을 가지며, 반기마다 지급됩니다. 2030년 3월 이후에는 금리가 분기마다 3개월 SOFR에 394 베이시스 포인트를 더한 금리로 조정되어 2035년 3월 1일 만기까지 유지됩니다.
이 채권은 회사의 2급 자본으로 적격하며, 체사피크 뱅크의 1급 자본으로 기여될 수 있습니다. 수익금은 일반 기업 목적을 지원하는 데 사용되며, 포함 사항은:
- 성장 기회
- 은행 투자 포트폴리오의 부분 재배치
- 기회 기반의 보통주 매입
Chesapeake Financial Shares (CPKF) a réussi à réaliser un placement privé de 25 millions de dollars d'obligations subordonnées à taux fixe et variable. L'offre, qui a été largement sursouscrite, démontre une forte demande des investisseurs et des conditions de prix favorables.
Les obligations porteront initialement un taux d'intérêt de 8,00% du 28 février 2025 au 1er mars 2030, payé semestriellement. Après mars 2030, le taux sera réajusté trimestriellement à SOFR à trois mois plus 394 points de base jusqu'à l'échéance du 1er mars 2035.
Les obligations sont éligibles en tant que capital de niveau 2 pour l'entreprise et peuvent être apportées en tant que capital de niveau 1 à la Chesapeake Bank. Les produits soutiendront des objectifs d'entreprise généraux, notamment :
- Opportunités de croissance
- Repositionnement partiel du portefeuille d'investissement de la Banque
- Rachats opportunistes d'actions ordinaires
Chesapeake Financial Shares (CPKF) hat erfolgreich eine Privatplatzierung in Höhe von 25 Millionen Dollar von nachrangigen Anleihen mit festem und variablem Zinssatz abgeschlossen. Das Angebot, das erheblich überzeichnet war, zeigt eine starke Nachfrage von Investoren und günstige Preisbedingungen.
Die Anleihen werden zunächst einen Zinssatz von 8,00% vom 28. Februar 2025 bis zum 1. März 2030 haben, der halbjährlich ausgezahlt wird. Nach März 2030 wird der Zinssatz vierteljährlich auf den dreimonatigen SOFR zuzüglich 394 Basispunkte bis zur Fälligkeit am 1. März 2035 angepasst.
Die Anleihen qualifizieren sich als Tier-2-Kapital für das Unternehmen und können als Tier-1-Kapital an die Chesapeake Bank eingebracht werden. Die Erlöse werden allgemeine Unternehmenszwecke unterstützen, darunter:
- Wachstumsmöglichkeiten
- Teilweise Umstrukturierung des Anlageportfolios der Bank
- Opportunistische Rückkäufe von Stammaktien
- Oversubscribed offering indicates strong investor confidence
- $25M capital raise strengthens balance sheet
- Favorable pricing terms secured
- Notes qualify as Tier 2 capital, convertible to Bank's Tier 1 capital
- Flexibility for share repurchases and portfolio optimization
- 8.00% interest cost on new debt
- Long-term debt obligation until 2035
- Variable rate exposure after 2030 could increase interest costs
Robust Investor Demand Results in Significantly Oversubscribed Offering
KILMARNOCK, VA / ACCESS Newswire / March 3, 2025 / Chesapeake Financial Shares, Inc. (the "Company"), the parent company of Chesapeake Bank (the "Bank") and Chesapeake Wealth Management, Inc., announced today that the Company has completed a private placement (the "Offering") of
The Notes have been structured to qualify as Tier 2 capital for the Company under regulatory capital guidelines, and the proceeds may be contributed to the Bank as Tier 1 capital. The Offering size was increased due to significant investor demand at favorable pricing. The proceeds from the sale of the Notes will be utilized for general corporate purposes, which may include pursuit of continued growth opportunities, a partial repositioning of the Bank's investment portfolio, and opportunistic repurchases of common shares.
The Notes will initially bear interest at
Jeffrey M. Szyperski, President and Chief Executive Officer of the Company, stated, "We are pleased to share the news of the successful completion of our subordinated debt offering with such attractive terms. The terms of this debt issuance are favorable to providing the Company with future growth opportunities as well as further strengthening our already strong balance sheet that should translate into long-term shareholder value."
Performance Trust Capital Partners, LLC served as the sole placement agent for the Offering. Williams Mullen served as legal counsel to the Company, and Troutman Pepper Locke LLP served as legal counsel to Performance Trust Capital Partners, LLC.
ABOUT CHESAPEAKE FINANCIAL SHARES, INC.
Chesapeake Financial Shares, Inc. is a one-bank holding company originally chartered in 1900 and based in Kilmarnock, Virginia. Chesapeake Financial Shares, Inc.'s stock is quoted on the OTC Markets Group Inc.'s OTCQX Market under the symbol "CPKF."
The holding company operates two subsidiaries. Chesapeake Bank and Chesapeake Wealth Management, Inc.
Chesapeake Wealth Management, Inc. is an independent wealth management firm offering brokerage, trust, and estate management services.
More detail can be found in the Company's most recent Annual Report, or visit www.chesapeakefinancialshares.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that are subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements because they are subject to numerous risks and uncertainties relating to the Company's consolidated operations and business environment, which are difficult to predict and may be beyond the Company's control. Forward-looking statements include information concerning the Company's and the Bank's future results, performance, operations and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "potential," "opportunity," "could," "project," "seek," "should," "would," "plan," "estimate" or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results to differ materially from the information in the forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, if a change occurs or the Company's, assumptions, beliefs or expectations were incorrect, the Company's business, financial condition, liquidity or results of operations may vary materially from those expressed in such forward-looking statements. New risks and uncertainties arise from time to time, and the Company cannot predict these events or how they may affect the Company. The Company has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this press release or elsewhere might not reflect the Company's actual results.
Contact: Jeffrey M. Szyperski 1-800-434-1181
SOURCE: Chesapeake Financial Shares Inc.
View the original press release on ACCESS Newswire
FAQ
What is the size and purpose of Chesapeake Financial's (CPKF) 2025 subordinated notes offering?
What interest rate will CPKF pay on its 2025 subordinated notes?
When can CPKF redeem the 2025 subordinated notes?
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What does the oversubscription of CPKF's 2025 notes offering indicate?
