STATE COLLEGE, PA – Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, recently announced the completion of a private placement of $35.0 million in aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Unsecured Notes due 2036 (the “Notes”) to various institutional and accredited investors (the “Offering”). Strong investor demand drove the Offering from its initial $25.0 million target to $35.0 million. The Company intends to utilize the net proceeds of the Offering to redeem its 2021 subordinated notes, repay other borrowings at the Holding Company, and for general corporate purposes.
Brean Capital, LLC served as Sole Placement Agent for the offering.
“The successful completion of this subordinated debt offering on favorable terms reflects the strength of our franchise and the confidence investors have placed in Kish,” stated Gregory T. Hayes, President and Chief Executive Officer. “This debt offering meaningfully strengthens our already strong capital position and gives us the financial flexibility to continue to grow our business, pursuing our long-term strategies and delivering value to our shareholders —while taking advantage of one of the most cost effective vehicles available for raising regulatory capital.”
The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory purposes and will bear a fixed interest rate of 6.25% until June 1, 2031, after which time until maturity on June 1, 2036, the interest rate will reset quarterly to an annual floating rate equal to 90-day average SOFR (Secured Overnight Financing Rate) plus 223 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after June 1, 2031. Any redemption will be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest. The Notes are not subject to redemption at the option of the holders.
Kish Bancorp, Inc. is a diversified financial services corporation headquartered in Belleville, PA, with executive offices in State College, PA and an Innovation Center in Reedsville, PA. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates 20 locations serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties in Pennsylvania, as well as northeastern Ohio. In addition to Kish Bank, other business units include: Kish Insurance, an independent property and casualty insurance agency; Kish Financial Solutions, which offers trust, fiduciary, and wealth management advisory services; Kish Benefits Consulting, which provides employee benefits consulting services; and Kish Travel, a full-service travel agency. KISB is the OTCQX stock ticker symbol for Kish Bancorp, Inc. For additional information, please visit ir.kishbancorp.com or www.otcmarkets.com/stock/KISB.
Brean Capital’s Investment Banking Group is dedicated to helping its clients achieve their strategic and financial goals. For more than 50 years, the Firm has specialized in providing capital raising, M&A and financial advisory services to middle market businesses. Throughout its history, Brean Capital has established a track record of providing its clients with deep market knowledge, commitment and experience to ensure a successful transaction. For more information, please visit: www.breancapital.com/InvestmentBanking.