Revere Bank in Laurel, Md., has raised $31 million in a subordinated debt offering that it plans to use for M&A and other purposes.
The proceeds are expected to support the $1.2 billion-asset bank's $65.1 million acquisition of Monument Bank in Rockville, Md., which is scheduled to be completed Friday, a Revere spokeswoman said. They will also be used for acquisitions, loan growth, additional liquidity and working capital, as well as other corporate purposes, she said.
The debt issuance "allows us to maintain top-tier capital ratios across the board and positions us for strong future growth," Chief Executive Ken Cook said in a news release Thursday.
The notes will mature in 2026 and bear a 5.6% fixed rate for the first five years. The notes would then float at three-month Libor plus 4.4%. Ambassador Financial Group was the manager for the offering.
Revere last held an offering in April 2015, when it raised $15.5 million through a private placement of common stock.