Blue Ridge Bankshares in Luray, Va., has issued $10 million in subordinated debt and plans to exit the Small Business Lending Fund.

The $247 million-asset company issued 6.75% fixed-to-floating rate notes due 2025 in a private placement to institutional investors. The offering closed Monday.

Blue Ridge plans to use the proceeds to redeem its $4.5 million of SBLF preferred stock, which it issued to the Treasury Department in August 2011. The remaining proceeds will be used for "organic growth and potential strategic opportunities," Brian Plum, chief executive, said in a news release.

Sandler O'Neill was placement agent on the offering. Covington & Burling and LeClairRyan were legal advisers to Blue Ridge.

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