Four Oaks Fincorp in Four Oaks, N.C., has refinanced $11.5 million in subordinated debt.

The $714.5 million-asset company lowered its rate on the debt to 6.25% from 8.5%, according to a news release. Four Oaks completed a private placement of $11.5 million in subordinated promissory notes due in 2025; it used the proceeds to pay off an equal amount of subordinated promissory notes.

On the 6.25% notes, Four Oaks can begin prepaying the debt starting in November 2020. Four Oaks placed the new, lower-rate notes with the same investors that bought the higher-rate notes.

Four Oaks had been prohibited from paying interest on its subordinated promissory notes without prior regulatory approval, due to a May 2011 written agreement with federal and state regulators, according to Four Oaks' most recent 10-Q filing. The written agreement was terminated on July 30, freeing Four Oaks to pay interest on the notes without prior approval.

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