PFIS Completes $85M Private Placement

By Bobby Samwell • Sunday, June 08 15:14 • Permanent Link

Peoples Financial Services Corp. (NASDAQ: PFIS) has successfully completed a private placement of $85.0 million in aggregate principal amount of 7.75% fixed-to-floating rate subordinated notes due 2035. The company intends to use the proceeds for general corporate purposes and the redemption of existing subordinated debt.

The notes will initially bear interest at a rate of 7.75% per annum from issuance until June 15, 2030, with interest payable semi-annually in arrears beginning December 15, 2025. From June 15, 2030, to the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to three-month term secured overnight financing rate plus 411 basis points, with interest payable quarterly in arrears beginning September 15, 2030.

The company's CEO, Gerard A. Champi, highlighted the successful completion of the offering, emphasizing the robust demand and favorable terms. He also attributed the successful issuance to the company's position of strength following excellent execution on the merger with FNCB Bancorp, Inc., as reflected in their first-quarter performance numbers.

In connection with the issuance and sale of the notes, the company entered into a registration rights agreement with the purchasers of the notes. The notes have been structured to qualify as tier 2 capital for the company for regulatory capital purposes.

Performance Trust Capital Partners, LLC acted as the sole placement agent for the notes offering, while Troutman Pepper Locke LLP served as legal counsel to the company and Luse Gorman, PC served as legal counsel to the placement agent.

Peoples Financial Services Corp. is the bank holding company of Peoples Security Bank and Trust Company, serving its retail and commercial customers through 39 full-service community banking offices located within several counties in Pennsylvania, New Jersey, and New York.

The market has reacted to these announcements by moving the company's shares 1.96% to a price of $48.49. Check out the company's full 8-K submission here.

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