EDVR - Endeavor Bancorp Completes Private Placement of $12.5 Million of Subordinated Debt and Announces Greater Los Angeles and Inland Empire Market Expansion | Benzinga
SAN DIEGO, March 05, 2024 (GLOBE NEWSWIRE) -- Endeavor Bancorp (OTCQX:EDVR) (the "Company," or "Bancorp"), the holding company for Endeavor Bank (the "Bank"), today announced that it has completed the issuance of $12.5 million in fixed-to-floating rate subordinated notes. The subordinated debt is structured such that it qualifies as Tier 2 capital at the holding company and will be down streamed to the Bank as Tier 1 capital. The Company intends to use the net proceeds primarily to support its strategic expansion into the greater Los Angeles and Inland Empire markets and for general corporate purposes. Performance Trust Capital Partners, LLC acted as placement agent.
"This successful capital raise gives us an opportunity to build out our business plan and is an affirmation of the tremendous opportunities in our greater Southern California market," said Dan Yates, CEO. "Our financial modeling supports the value and ability to leverage the new capital many times as we expand our team, positioning us to achieve much stronger returns over the next five years. Subordinated notes are a very cost-effective way to raise regulatory capital."
Principal on the notes is due on March 1, 2034, and the debt is not redeemable until March 1, 2029, except on the occurrence of certain specified events. Interest only is payable in arrears prior to the due date, every six months during the fixed interest rate period and quarterly thereafter. The interest rate is fixed until March 1, 2029 at 9.00%, and thereafter floats based on the Three-Month Term SOFR (provided, however, that in the event Three-Month Term SOFR is less than zero, Three-Month Term SOFR shall be deemed zero) plus 498 basis points.
The Company also announced its plans to enter the greater Los Angeles Metro and Inland Empire markets, with key hire Duncan Hughes to lead the efforts. Hughes, who recently joined the Company as Senior Vice President - Regional Manager, will be establishing a presence in the San Gabriel Valley area as the Company lays the groundwork for a full-service Regional Office, with plans for expansion later this year and into 2025. His team will ...