New Hampshire Thrift Bancshares in Newport has raised $17 million by issuing subordinated debt to certain investors.
The holding company of the $1.5 billion-asset Lake Sunapee Bank disclosed in a regulatory filing Wednesday that it has issued an undisclosed number of unsecured, subordinated notes that mature on Nov. 1, 2024, and have a fixed 6.75% annual interest rate.
Most of the proceeds will be used to redeem a portion of the company's preferred stock issued as part of the Small Business Lending Program, Stephen Theroux, the company's president and chief executive, said in a press release. Subordinated debt "is the lowest cost form of regulatory capital available," he said.
Griffin Financial Group served as placement agent for the company, which has 36 branches in New Hampshire and Vermont.