Bank of the James in Virginia to Raise $11 Million

Bank of the James Financial Group in Lynchburg, Va., is planning to raise about $11.5 million through a private placement.

The $508 million-asset company said in a press release Tuesday that it had agreed to sell 1 million shares of its common stock to certain institutional investors at $11.52 a share in a deal set to close next week.

Bank of the James said it plans to $10 million of the proceeds to prepay in notes it issued in mid-2012 that bear interest at 6% a year with quarterly interest only payments. The notes mature in April 2017 but can be prepaid with proper notice.

Prepaying the notes should lower the company's quarterly interest expense by $150,000. The company added that, by replacing debt with equity, the moves will boost its consolidated capital ratios.

Raymond James is the sole placement agent for private placement.

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