FineMark Holdings, Inc. Announces Completion of $21.3 Million Private Placement of Subordinated Notes
FineMark Holdings announced the completion of a $21.3 million private placement of subordinated notes due November 30, 2030. These fixed-to-floating rate notes qualify as Tier 2 capital and have a fixed interest rate of 4.25% until November 2025, after which the rate will reset quarterly based on the Three-Month SOFR. Proceeds will refinance existing debt and support growth for FineMark National Bank & Trust. The notes received a BBB- rating from Kroll. CFO Brian Eagleston thanked the placement agents involved in the transaction.
- Successfully raised $21.3 million through the private placement of subordinated notes.
- Notes qualify as Tier 2 capital, enhancing regulatory capital position.
- Fixed interest rate of 4.25% until November 2025 provides predictable financing costs.
- Proceeds are primarily for refinancing existing indebtedness, raising concerns about current financial obligations.
- Variable interest rate post-November 2025 may increase financial risk if SOFR rises.
FORT MYERS, FL / ACCESSWIRE / November 23, 2020 / FineMark Holdings, Inc. (the "Company") (OTCQX:FNBT), the parent company of FineMark National Bank & Trust, is pleased to announce that the Company has completed a private placement of
The Notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. The Notes are unsecured and have a ten-year term, maturing November 30, 2030, and will bear interest at a fixed annual rate of
The Company intends to use the net proceeds to refinance existing indebtedness, growth capital for FineMark National Bank & Trust and for other general corporate purposes.
FineMark Holdings, Inc. CFO Brian Eagleston stated "we are very pleased with the work completed by Commerce Street Capital and PNC FIG Advisory acting as joint-placement agents. Alston & Bird LLP served as legal counsel to the Company and Pillar+Aught served as legal counsel for the placement agents."
About the FineMark Holdings, Inc. and FineMark National Bank & Trust
FineMark Holdings, Inc. is the parent company of FineMark National Bank & Trust. Founded in 2007, FineMark National Bank & Trust is a nationally chartered bank, headquartered in Florida. Through its offices located in Florida, Arizona and South Carolina, FineMark offers a full range of financial services, including personal and business banking, lending services, trust and investment services. The Corporation's common stock trades on the OTCQX under the symbol FNBT. Investor information is available on the Corporation's website at www.finemarkbank.com.
Forward-Looking Statements
This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value or outflows of assets under administration; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectability, default and charge-off rates; changes in the size and nature of our competition; changes in legislation or regulation and accounting principles, policies and guidelines; occurrences of cyber-attacks, hacking and identity theft; natural disasters; and changes in the assumptions used in making such forward-looking statements. Further, the adverse effect of the COVID-19 pandemic on the Company, its customers and the communities where it operates may adversely affect the Company's business, results of operations and financial condition for an indefinite period of time. You should carefully review all of these factors and you should be aware that there might be other factors that could cause these differences.
These forward-looking statements were based on information, plans and estimates at the date of this report. We assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Contact:
Brian Eagleston
Chief Financial Officer
FineMark National Bank & Trust
239-461-5916
beagleston@finemarkbank.com
SOURCE: FineMark Holdings, Inc.
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FAQ
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