ConnectOne Bancorp in Englewood Cliffs, N.J., has issued $50 million in subordinated debt and intends to exit the Small Business Lending Fund program.

The parent company of the $3.5 billion-asset ConnectOne Bank plans to use the proceeds from its private placement to redeem $11.25 million in stock issued in 2011 the U.S. Treasury's Small Business Lending Fund. The remaining proceeds will be contributed to ConnectOne Bank as capital, fund future company growth and for other general corporate purposes.

The notes mature in 10 years and are non-callable for five years. They carry a 5.75% rate until July 2020, when the rate will reset quarterly to the then-current three-month Libor rate plus 393 basis points. The notes were issued to unnamed institutional investors.

Raymond James & Associates and Keefe, Bruyette & Woods were joint-placement agents for the offering.

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