Summit Financial Group Announces Completion of $30.0 Million Issuance of Subordinated Debt
September 23 2020 - 1:25PM
Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF)
today announced the completion of a private placement of $30
million of its 5.00% Fixed to Floating Rate Subordinated Notes
due 2030 (the "Notes") to certain qualified institutional buyers
and accredited investors.
The Notes will initially bear interest at a fixed annual rate of
5.00% for the first five years and will reset quarterly thereafter
to the then current three-month SOFR rate plus 487 basis
points. Beginning on September 30, 2025 through maturity, the
Notes may be redeemed, at the Company’s option, on any scheduled
interest payment date. The Notes are intended to qualify as Tier 2
capital for regulatory capital purposes for the Company.
Summit intends to use the net proceeds from the offering for
general corporate purposes, which may include organic growth and
strategic initiatives, such as acquisitions.
D.A. Davidson & Co. served as the sole placement agent for
the offering. Hunton Andrews Kurth LLP served as
legal counsel to the Company and Bowles Rice, LLP served
as legal counsel to the placement agents.
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 by 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 Notes have not been registered under the
Securities Act and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements. 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 Summit
Summit Financial Group, Inc. is a $2.86 billion financial
holding company headquartered in Moorefield, West Virginia. Summit
provides community banking services primarily in the Eastern
Panhandle, Southern and North Central regions of West Virginia and
the Northern, Shenandoah Valley and Southwestern regions of
Virginia, through its bank subsidiary, Summit Community Bank, Inc.,
which operates 41 banking locations.
Contact: Robert
S. Tissue, Executive Vice President & CFOTelephone:
(304) 530-0552Email:
rtissue@summitfgi.com
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