HIGH POINT, N.C., Sept. 30, 2014 /PRNewswire/ -- BNC Bancorp
(NASDAQ: BNCN) (the "Company"), the parent company of Bank of
North Carolina (the "Bank"), today
announced that it has completed the public offering and sale of
$60 million of its 5.5% Fixed to
Floating Rate Subordinated Notes due October
1, 2024 (the "Notes"). The Notes will bear interest at a
fixed rate of 5.5% per annum from and including September 30, 2014 to but excluding October 1, 2019, payable semi-annually in
arrears. From and including October 1,
2019 to the maturity date, the interest rate will reset
quarterly to an annual interest rate equal to the then-current
three-month LIBOR plus 359 basis points, payable quarterly in
arrears. The Notes were sold to the public at par, resulting
in net proceeds, after underwriting discounts and commissions, of
approximately $59.1 million.
The Company plans to use the proceeds of the offering to fund
the payment of the outstanding principal balance on its
$30.0 million senior unsecured term
loan with Synovus Bank, to fund the payment of accrued and unpaid
interest and prepayment fees due under such loan, and for general
corporate purposes.
Richard D. Callicutt II,
President and CEO, noted, "We have watched the debt markets for
several quarters and ultimately felt the timing and the amount of
this issuance was ideal for our Company. We are extremely
pleased with the demand for the offering, and with the resulting
new capital the Company and the Bank are both well positioned to
continue to pursue both organic and acquisition opportunities that
enhance our franchise and provide meaningful value to our
shareholders."
Mr. Callicutt continued, "After completion of this debt
offering, we have no immediate plans to utilize the registration
statement for further capital issuances."
Sandler O'Neill + Partners, L.P. ("Sandler O'Neill") was the
sole manager for the Notes offering.
The Notes will be issued and sold pursuant to an effective shelf
registration statement (File No. 333-198370), the base
prospectus included in the registration statement, and a prospectus
supplement relating to the offering of the Notes filed with the
Securities and Exchange Commission (the "SEC"). Before you invest,
you should read the base prospectus in the registration statement,
the prospectus supplement relating to the offering and other
documents the Company has filed with the SEC for more complete
information about the Company and the offering. You may obtain
copies of the prospectus supplement and accompanying base
prospectus relating to the offering without charge by visiting the
SEC's website at www.sec.gov, or from Sandler O'Neill + Partners,
L.P., 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, Attn: Syndicate
Operations (1-866-805-4128).
This press release is for informational purposes only and is not
an offer to sell or the solicitation of an offer to sell any
security of the Company, which is made only by means of a
prospectus supplement and related base prospectus, nor will there
be any sale of any security in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About BNC Bancorp and Bank of North
Carolina: Headquartered in High Point, NC, BNC Bancorp is the parent
company of Bank of North Carolina,
a commercial bank with $3.7 billion
in assets. Bank of North Carolina
provides a complete line of banking and financial services to
individuals and businesses through its 47 banking offices in North
and South Carolina. The Bank's 10
locations in South Carolina
operate as BNC Bank. Bank of North
Carolina is insured by the FDIC and is an equal housing
lender. BNC Bancorp's stock is traded and quoted in the NASDAQ
Capital Market under the symbol "BNCN."
Forward-Looking Statements. This press release
contains forward-looking statements relating to the financial
condition, results of operations and business of BNC Bancorp and
the Bank. These forward-looking statements involve risks and
uncertainties and are based on the beliefs and assumptions of the
management of BNC Bancorp, and the information available to
management at the time that this press release was prepared.
Factors that could cause actual results to differ materially from
those contemplated by such forward-looking statements include,
among others, the following: (i) the economic recovery may face
challenges causing its momentum to falter or a further recession;
(ii) expected cost savings and other benefits anticipated in
connection with our acquisitions may not be fully realized or
realized within the expected time frame; (iii) our ability to
integrate acquisitions and retain existing customers and attract
new ones; and (iv) adverse changes in credit quality trends.
Additional factors affecting BNC Bancorp and the Bank are discussed
in BNC Bancorp's filings with the Securities and Exchange
Commission (the "SEC"), Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q and its Current Reports on Form 8-K. Please
refer to the Securities and Exchange Commission's website at
www.sec.gov where you can review those documents. BNC Bancorp does
not undertake a duty to update any forward-looking statements made
in this press release.
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SOURCE BNC Bancorp