Old Line Bancshares in Bowie, Md., has issued $35 million in subordinated debt to help pay for an acquisition and for growth moves down the road.
The $1.3 billion-asset company said Wednesday that the fixed- to floating-rate subordinated notes are due in 2026. They will bear interest fixed at 5.6% per year for the first five years. After that, the rate will adjust to the then-current Libor rate plus 450.2 basis points.
The notes are being offered to qualified institutional buyers. The sale of the notes is expected to close on Aug. 15.
Old Line said it intends to use the proceeds to fund its pending purchase of the remaining 37.5% interest in the office owner and manager Pointer Ridge Office Investments; to pay certain indebtedness; and to use for general corporate purposes including future growth.
Old Line has been in expansion mode, announcing last week that it agreed to buy the $134 million-asset Regal Bancorp in Owings Mills, Md., for about $6.6 million in cash and stock.