First Keystone raises $33M in subordinated notes to refinance debt
What's the deal? First Keystone CorporationDealroom has a profile for this one. Try Dealroom → (OTCID: FKYS), the holding company for Pennsylvania-based First Keystone Community BankDealroom has a profile for this one. Try Dealroom →, has completed a $32.5 million private placement of fixed-to-floating rate subordinated notes due 2036. Performance Trust Capital Partners served as the sole placement agent.
What's the endgame? The notes are structured to qualify as Tier 2 capital under bank regulatory guidelines. First Keystone plans to use the proceeds to redeem its $25.0 million subordinated notes due December 31, 2030, and for general corporate purposes.
Why now? Refinancing the older notes ahead of their 2030 maturity locks in fresh capital and extends the maturity profile to 2036. The Company can redeem the new notes on any interest payment date on or after September 30, 2031.
Founded in 1864 and headquartered in Berwick, First Keystone Community Bank holds $1.57 billion in total assets and operates 19 full-service offices across five Pennsylvania counties. It offers personal and business banking, lending, trust and estate planning, and digital banking services.
The notes were not registered under the Securities Act of 1933 and were sold under an exemption. They are not deposits and are not insured by the FDIC.
The signal: At $32.5 million, the deal ranks in the 91st percentile of non-VC private placements over the trailing 48 months, based on a sample of 5,673 comparable rounds. For a community bank of this size, that marks a sizable capital raise aimed at shoring up its regulatory footing.
Read more: marketscreener.com
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