Northrim Bancorp, Inc. has completed a $60.0 million subordinated notes offering, with an aggregate principal amount of 6.875% fixed-to-floating rate subordinated notes due 2035. The notes will initially bear interest at a fixed annual rate of 6.875% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 348 basis points.
The company intends to use the net proceeds from the private placement for general corporate purposes and to support regulatory capital ratios for growth initiatives. In connection with the issuance and sale of the notes, the company entered into a registration rights agreement with each of the purchasers of the notes.
Keefe, Bruyette & Woods, a Stifel company, served as the lead placement agent, and Hovde Group, LLC served as the co-placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to the company, and Squire Patton Boggs (US) LLP served as legal counsel to the placement agents.
The press release also notes that the notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Northrim Bancorp, Inc. is the holding company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state. The bank also operates a factoring and asset-based lending division in the state of Washington through its division, Northrim Funding Services. Additionally, the company's wholly-owned subsidiaries include Sallyport Commercial Finance, LLC, a specialty finance company, and Residential Mortgage, LLC, a regional home mortgage company.
As a financial journalist, I would focus on the specific details of the offering, including the amount raised, the terms of the notes, and the intended use of the proceeds, as well as the key players involved in the offering. The market has reacted to these announcements by moving the company's shares -1.3% to a price of $25.05. Check out the company's full 8-K submission here.
