BNC Bancorp in High Point, N.C., is planning to issue $60 million in subordinated notes to pay off a loan from another bank.
The $3.7 billion-asset company said in a press release Friday that it will issue 5.5% fixed-to-floating rate notes due Oct. 1, 2024. BNC originally planned to issue $50 million in notes but increased the offering due to demand.
BNC said it plans to use some of the proceeds from the offering to pay the outstanding principal balance, along with any unpaid interest, on its $30 million loan from Synovus Bank. BNC borrowed the funds from Synovus last year to help it buy back Troubled Asset Relief Program shares from investors who bought them in a Treasury Department auction
Sandler O'Neill is the sole manager for the offering. The notes will be issued and sold under an effective shelf registration statement.