Salisbury Bancorp. in Lakeville, Conn., has issued $10 million in subordinated debt and plans to exit the Small Business Lending Fund.
The $904 million-asset company issued 6% fixed-to-floating rate notes due 2025 in a private placement to general and secured creditors, and to depositors of the bank.
Salisbury plans to use the proceeds to redeem its remaining shares of SBLF preferred stock, as well as other cash on hand, Chief Executive Richard Cantele said in a Friday news release. The bank received $16 million in capital from the Treasury Department August 2011.
An upcoming increase in the amount of the dividend payment, to 9% from 1%, made the transaction an "attractive" opportunity, Cantele said in a news release.
Sandler O'Neill was placement agent. Cranmore, FitzGerald & Meaney was legal counsel.