Touchstone Bankshares, Inc. (OTC Pink: TSBA), the holding company for Touchstone Bank, announced today the closing of its private placement of $8.0 million of subordinated notes due 2030.
"We are proud to announce the successful completion of our subordinated debt offering," said James Black, President and CEO. "This offering was oversubscribed, and we are very pleased with the group of investors who participated. We believe the quality of this offering's investor base speaks highly of our Company's performance and commitment to credit quality."
About the Notes
The Notes have a maturity date of August 15, 2030 and carry a coupon of 6.00% for the first five years. Thereafter, the Notes will pay interest at 3-month SOFR plus 596 basis points, resetting quarterly. The Company is entitled to redeem the Notes without penalty, in whole or in part, on any interest payment date on or after August 15, 2025, or at any time, in whole but not in part, upon certain other specified events. The Notes have been structured to qualify as Tier 2 capital for regulatory purposes at the holding company.
Mr. Black further commented, "The subordinated debt will allow us to support our strategic growth plans, potentially repay our existing $3.5 million of subordinated debt held at Touchstone Bank that carries a higher coupon, and to fuel our commitment to our friends and neighbors in our communities. We were very pleased with the positive response from the investment community."
The Company plans to use the proceeds from the placement of the Notes for general corporate purposes, including the potential repayment of the existing $3.5 million of subordinated debt and to support capital levels at Touchstone Bank.
Piper Sandler & Co. served as the sole placement agent for the offering. Williams Mullen served as legal counsel to the Company and Troutman Pepper Hamilton Sanders LLP served as legal counsel to the placement agent.
About Touchstone Bankshares, Inc.
Touchstone Bankshares, Inc. is the bank holding company for Touchstone Bank. The formation of Touchstone Bankshares, Inc. was finalized on July 1, 2020 with a one-for-one share exchange of Touchstone Bank preferred and common shares with Touchstone Bankshares, Inc. preferred and common shares, respectively. Touchstone Bank is a full-service community bank headquartered in Prince George, Virginia. The Bank has eleven branches serving Southern and Central Virginia and two branches and a loan center serving Northern North Carolina. Visit www.touchstone.bank for more information.
