South Atlantic Bancshares, Inc., parent of South Atlantic Bank (the “Bank”), today announced the issuance of $30.0 million aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 (“Notes”) to certain institutional accredited investors and qualified institutional buyers in a private placement. The Company intends to use the net proceeds from this transaction for potential future strategic opportunities and general corporate purposes.
The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes. The Notes will initially bear interest at a fixed annual rate of 3.25%, payable quarterly in arrears to, but excluding, December 31, 2026. From and including December 31, 2026, to, but excluding, the maturity date of December 16, 2031 or earlier redemption date, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the then-current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York (provided, that in the event the benchmark rate is less than zero, the benchmark rate will be deemed to be zero) plus 212 basis points, payable quarterly in arrears. South Atlantic is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after December 16, 2026, and to redeem the Notes at any time in whole, but not in part, upon certain other specified events.
K. Wayne Wicker, Chairman and Chief Executive Officer of South Atlantic, stated, “We are very pleased with the results of our subordinated debt offering and appreciate the strong support from the investment community. We believe this additional capital will provide us with opportunities to strategically grow the Bank and continue to support our customers and communities.”
Performance Trust Capital Partners, LLC served as placement agent for this offering. Hunton Andrews Kurth LLP served as legal counsel to the Company and Fenimore Kay Harrison LLP served as legal counsel to the placement agent.
This press release is for informational purposes only and shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy the Notes, 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 any such jurisdiction. The Notes have not been registered under the Securities Act of 1933, as amended, 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 South Atlantic Bancshares, Inc.
South Atlantic Bancshares, Inc. is a registered bank holding company based in Myrtle Beach, South Carolina with $1.2 billion in total assets. The Company’s banking subsidiary, South Atlantic Bank, is a full-service financial institution spanning the entire coastal area of South Carolina, and is locally owned, controlled and operated. The Bank operates eleven offices in Myrtle Beach, Carolina Forest, North Myrtle Beach, Murrells Inlet, Pawleys Island, Georgetown, Mount Pleasant, Charleston, Bluffton and Hilton Head Island, South Carolina. The Bank specializes in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products, including mortgage, and treasury management, including South Atlantic Bank goMobile, the Bank’s mobile banking app. The Bank also offers internet banking, no-fee ATM access, checking, certificates of deposit and money market accounts, merchant services, mortgage loans, remote deposit capture, and more. For more information, visit www.SouthAtlantic.bank.