Avidbank Holdings in Palo Alto, Calif., has raised $12 million through a private placement of debt.
The $556 million-asset company sold subordinated notes Nov. 12 that will mature in November 2025, it said in a news release Wednesday. The proceeds are slated for general corporate purposes including contributing growth capital.
The notes will initially bear an interest rate of 6.875% per year paid semiannually for the first five years and then reset quarterly to the then-current 3-month Libor plus 536.7 basis points for the rest of the term. The notes can be redeemed after five years, pending certain conditions. They will also qualify as Tier 2 capital for regulatory purposes, the company said.
Sandler O'Neill was Partners was the placement agent for the transaction. Avidbank was advised by the law firm Manatt, Phelps & Phillips.