SPARTA, Mich., Sept. 7, 2021 /PRNewswire/ -- ChoiceOne
Financial Services, Inc. (Nasdaq: COFS) (the "Company"), the parent
company of ChoiceOne Bank, today announced the completion of a
private placement of $32.5 million in
aggregate principal amount of 3.25% fixed-to-floating rate
subordinated notes due 2031 (the "Notes"). The Company intends to
use the net proceeds of the private placement for general corporate
purposes, including support for organic growth plans, possible
redemption of senior debt, common stock repurchases and support for
bank-level capital ratios.
The Notes will initially bear interest at a fixed interest rate
of 3.25% per annum until September 3,
2026, after which time the interest rate will reset
quarterly to a floating rate equal to a benchmark rate, which is
expected to be the then current three-month term Secured Overnight
Financing Rate (SOFR) plus 255 basis points until the Notes'
maturity on September 3, 2031. The
Notes are redeemable by the Company, in whole or in part, on or
after September 3, 2026, and at any
time upon the occurrence of certain events. The Notes have been
structured to qualify as Tier 2 capital for the Company for
regulatory capital purposes.
"I am very pleased with the favorable terms of our subordinated
notes offering," said Kelly Potes, Chief Executive Officer. "This
non-dilutive capital strengthens our ability to continue to execute
on our strategy to deliver long-term shareholder value while
maintaining strong capital levels."
D.A. Davidson & Co. acted as placement agent for the
transaction and was represented by Hunton Andrews Kurth LLP.
Warner Norcross + Judd LLP, served as legal counsel to the
Company.
The Notes have not been registered under the Securities Act of
1933, as amended, 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. This press release is for informational
purposes only and shall not constitute an offer to sell, or the
solicitation of an offer to buy any security, nor shall there be
any sale in any jurisdiction in which such an offer, solicitation,
or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction. The indebtedness
evidenced by the Notes is not a deposit and is not insured by the
Federal Deposit Insurance Corporation or any other government
agency or fund.
About ChoiceOne
ChoiceOne Financial Services, Inc. is
a financial holding company headquartered in Sparta, Michigan and the parent corporation of
ChoiceOne Bank, Member FDIC. ChoiceOne Bank operates 34 offices in
parts of Kent, Lapeer, Macomb, Muskegon, Newaygo, Ottawa, and St.
Clair counties. ChoiceOne Bank offers insurance and
investment products through its subsidiary, ChoiceOne Insurance
Agencies, Inc. ChoiceOne Financial Services, Inc. common stock is
quoted on the NASDAQ Capital Market under the symbol "COFS." For
more information, please visit Investor Relations at ChoiceOne's
website at www.choiceone.com.
Forward-Looking Statements
This release may contain
forward-looking statements. Words such as "anticipates,"
"believes," "estimates," "expects," "forecasts," "intends," "is
likely," "plans," "predicts," "projects," "may," "could," "look
forward," "continue", "future" and variations of such words and
similar expressions are intended to identify such forward looking
statements. These statements reflect current beliefs as to the
expected outcomes of future events and are not guarantees of future
performance. These statements involve certain risks, uncertainties
and assumptions ("risk factors") that are difficult to predict with
regard to timing, extent, likelihood and degree of occurrence.
Therefore, actual results and outcomes may materially differ from
what may be expressed, implied or forecasted in such
forward-looking statements. Furthermore, ChoiceOne undertakes no
obligation to update, amend, or clarify forward-looking statements,
whether as a result of new information, future events, or
otherwise.
The COVID-19 pandemic is adversely affecting us and our
customers, counterparties, and third-party service providers. The
ultimate extent of the impacts on our business, financial position,
results of operations, liquidity, and prospects is uncertain.
Additional risk factors include, but are not limited to, the risk
factors described in Item 1A in ChoiceOne Financial Services,
Inc.'s Annual Report on Form 10-K for the year ended December 31, 2020.
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SOURCE ChoiceOne Financial Services, Inc.