QNB CORP. ANNOUNCES COMPLETION OF OFFERING OF $40 MILLION OF SUBORDINATED NOTES
QNB Corp. (OTC: QNBC), parent company of QNB Bank, has successfully completed a private placement of $40 million in fixed-to-floating rate subordinated notes. The notes, qualifying as Tier 2 capital, were oversubscribed by nearly two times, demonstrating strong investor demand. Initially bearing an interest rate of 8.875% per annum until September 1, 2029, the notes will then reset quarterly based on the three-month SOFR plus a spread. The offering provides QNB with cost-effective capital to support growth and potential strategic opportunities without diluting current shareholders. Maturing on September 1, 2034, the notes offer redemption options after the fifth anniversary. This marks QNB's first institutionally led capital raise, highlighting the strength of its franchise.
QNB Corp. (OTC: QNBC), la società madre di QNB Bank, ha completato con successo un collocamento privato di 40 milioni di dollari in note subordinate a tasso fisso variabile. Le note, che qualificano come capitale di Tier 2, sono state sovrascritte quasi due volte, dimostrando una forte domanda da parte degli investitori. Inizialmente con un tasso di interesse del 8,875% annuo fino al 1 settembre 2029, le note si ripristineranno poi trimestralmente basandosi sul tasso SOFR a tre mesi più uno spread. L'offerta fornisce a QNB capitale a costo efficace per sostenere la crescita e potenziali opportunità strategiche senza diluire gli attuali azionisti. Con scadenza il 1 settembre 2034, le note offrono opzioni di rimborso dopo il quinto anniversario. Questo rappresenta il primo aumento di capitale guidato da istituzioni per QNB, evidenziando la forza della sua rete.
QNB Corp. (OTC: QNBC), la empresa matriz de QNB Bank, ha completado con éxito un colocación privada de 40 millones de dólares en notas subordinadas de tasa fija a flotante. Las notas, que califican como capital de Tier 2, fueron sobraescritas casi el doble, lo que demuestra una fuerte demanda por parte de los inversores. Inicialmente con una tasa de interés del 8,875% anual hasta el 1 de septiembre de 2029, las notas se reiniciarán trimestralmente en función del SOFR a tres meses más un diferencial. La oferta proporciona a QNB capital rentable para apoyar el crecimiento y posibles oportunidades estratégicas sin diluir a los accionistas actuales. Con vencimiento el 1 de septiembre de 2034, las notas ofrecen opciones de redención después del quinto aniversario. Este es el primer aumento de capital liderado por instituciones para QNB, destacando la fortaleza de su franquicia.
QNB Corp. (OTC: QNBC), QNB Bank의 모회사, 가 4천만 달러 규모의 고정 금리에서 변동 금리로 전환 가능한 서브오르디네이드 노트의 사모 배정을 성공적으로 완료했습니다. 이 노트는 Tier 2 자본으로 인정되며 거의 두 배로 초과 청약되었습니다, 이는 강력한 투자자 수요를 보여줍니다. 초기 이자율은 연 8.875%로 2029년 9월 1일까지 적용되며, 이후에는 세 달 SOFR에 더해 스프레드를 기준으로 분기마다 재설정됩니다. 이 제안은 QNB에게 성장 및 잠재적 전략적 기회를 지원하기 위한 비용 효과적인 자본을 제공합니다, 현재 주주들의 지분 희석없이. 2034년 9월 1일 만기인 이 노트는 다섯 번째 기념일 이후에 상환 옵션을 제공합니다. 이는 QNB의 처음으로 기관 주도의 자본 조달을 의미하며, 그 프랜차이즈의 강점을 강조합니다.
QNB Corp. (OTC: QNBC), la société mère de QNB Bank, a réussi à réaliser un placement privé de 40 millions de dollars en obligations subordonnées à taux fixe et variable. Les obligations, qui se qualifient de capital de niveau 2, ont été surtitrées presque deux fois, ce qui démontre une forte demande des investisseurs. Avec un taux d'intérêt initial de 8,875% par an jusqu'au 1er septembre 2029, les obligations seront ensuite révisées trimestriellement sur la base du SOFR à trois mois plus un écart. Cette offre fournit à QNB du capital rentable pour soutenir sa croissance et des opportunités stratégiques potentielles sans diluer les actionnaires actuels. Avec une échéance le 1er septembre 2034, les obligations offrent des options de remboursement après le cinquième anniversaire. Cela marque la première levée de capital dirigée par des institutions pour QNB, soulignant la solidité de sa franchise.
Die QNB Corp. (OTC: QNBC), die Muttergesellschaft der QNB Bank, hat erfolgreich eine Privatplatzierung von 40 Millionen Dollar in festverzinslichen, variabel verzinslichen nachrangigen Anleihen abgeschlossen. Die Anleihen, die als Eigenkapital der Tier 2 qualifiziert sind, wurden nahezu doppelt überzeichnet, was die starke Nachfrage der Investoren zeigt. Anfänglich mit einem Zinssatz von 8,875% pro Jahr bis zum 1. September 2029 versehen, werden die Anleihen anschließend vierteljährlich basierend auf dem drei-Monats-SOFR plus einem Spread neu festgesetzt. Das Angebot bietet der QNB zinsgünstiges Kapital zur Unterstützung von Wachstum und potenziellen strategischen Möglichkeiten, ohne die aktuellen Aktionäre zu verwässern. Mit einer Fälligkeit am 1. September 2034 bieten die Anleihen Rückzahlungsoptionen nach dem fünften Jahrestag. Dies markiert die erste kapitalerhöhende Institutionen geleitete Aktion von QNB und hebt die Stärke seines Geschäftsmodells hervor.
- Successful completion of $40 million subordinated notes offering
- Notes oversubscribed by nearly two times, indicating strong investor demand
- Qualifies as Tier 2 capital under regulatory guidelines
- Provides cost-effective capital without shareholder dilution
- Supports future growth and potential strategic opportunities
- High initial interest rate of 8.875% per annum
QNB Corp. Secures Cost-Effective Capital to Meaningfully Support Its Growth and Scale. Significant Investor Demand Resulted in 2x Oversubscribed Offering
Quakertown, PA, Sept. 03, 2024 (GLOBE NEWSWIRE) -- QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), announced today that the Company has completed a private placement (the “Offering”) of
The Notes have been structured to qualify as Tier 2 capital under regulatory capital guidelines. The proceeds from the sale of the Notes will be utilized for general corporate purposes and potential future strategic opportunities. The offering size was increased due to oversubscription of nearly two-times.
The Notes will initially bear interest at
David W. Freeman, President and Chief Executive Officer of QNB, stated, “We are excited to announce the successful completion of our subordinated debt offering with such demand and attractive terms. We entered this offering from a position of strength with significant growth and market opportunity. We will leverage the capital to support our future growth, further enabling QNB to take advantage of market opportunities while remaining the heartbeat of our communities.”
Jeffrey Lehocky, Executive Vice President and Chief Financial Officer of QNB, further commented, “Through issuing these notes, we have cost-effectively increased our capital levels without diluting current shareholders. As our first institutionally led capital raise, we are pleased with the participation and execution, which exemplifies the value of QNB’s franchise.”
Performance Trust Capital Partners served as the sole placement agent in the Offering. Stevens & Lee served as legal counsel to the Company, and Hogan Lovells served as legal counsel to Performance Trust Capital Partners.
About the Company
QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Montgomery, and Lehigh Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.
No Offer or Solicitation
This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities. There will be no sale of securities 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.
Forward Looking Statement
This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
FAQ
What is the size and purpose of QNB Corp's (QNBC) recent subordinated notes offering?
What is the initial interest rate for QNB Corp's (QNBC) new subordinated notes?
When do QNB Corp's (QNBC) new subordinated notes mature?
How was the demand for QNB Corp's (QNBC) subordinated notes offering?
