The Bancorp, Inc. (NASDAQ: TBBK) recently announced the completion of a $200.0 million senior note offering. The notes were sold at par, resulting in net proceeds of approximately $197.0 million after the underwriting discount, but before estimated transaction expenses.
The company intends to use the net proceeds for several purposes, including redeeming or repaying at maturity all $100.0 million outstanding aggregate principal amount of its 4.75% senior notes due 2025, funding its share repurchase program, and allocating funds for general corporate purposes, which may include capital to support the growth of its subsidiary, The Bancorp Bank, National Association.
The notes, which have a 7.375% interest rate, were offered and sold pursuant to the company’s registration statement on Form S-1 and a final prospectus filed with the U.S. Securities and Exchange Commission (SEC). The notes will mature on September 1, 2030, and interest is payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2026.
Piper Sandler & Co. and Raymond James & Associates, Inc. acted as book-running managers for the offering.
The Bancorp, Inc., through its subsidiary The Bancorp Bank, N.A., provides non-bank financial companies with the people, processes, and technology to meet their unique banking needs. The Bancorp is recognized as the third-largest bank by asset size in South Dakota and is known for its various financial services and solutions.
For more information about the offering and the company, you can visit the SEC's website or contact Piper Sandler & Co. Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $65.45. If you want to know more, read the company's complete 8-K report here.
