Assabet Valley Bancorp completes private placement of subordinated notes

Hudson  – Assabet Valley Bancorp (the “Company”), the no-stock mutual holding company for Avidia Bank (the “Bank”), recently announced the completion of its private placement of $25 million in fixed-to-floating rate subordinated notes due 2027 (the “Notes”).  The Notes bear a fixed rate of 5.50 percent for the first five years and will reset quarterly thereafter to the then current three-month LIBOR rate plus 360 basis points.

The Company intends to use the net proceeds from the offering to support capital levels and further growth and for general corporate purposes.  The notes are intended to qualify as Tier 2 capital for the Company for regulatory purposes and the portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank.

Sandler O’Neill + Partners, L.P. served as the sole placement agent for the offering and was advised by Goodwin Procter LLP.  The Company was advised by Nutter McClennen & Fish LLP.

This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Notes 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 any such jurisdiction.  The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation (the “FDIC”) or any other government agency or fund.

Assabet Valley Bancorp is the no-stock mutual holding company for Avidia Bank.  For more information visit www.avidiabank.com.

Short URL: http://www.communityadvocate.com/?p=91478

Posted by on Aug 5 2017. Filed under Business, Hudson. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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