Sussex Bancorp in Rockaway, N.J., has raised $15 million by selling debt.
The $818.2 million-asset parent of Sussex Bank said it sold fixed- to floating-rate subordinated notes to an institutional investor. It did not name the investor.
The notes will mature in 2026 and bear an initial interest rate of 5.7% a year, payable quarterly for the first five years. Then a variable rate will reset quarterly to a level equal to the then-current three-month Libor plus 350 basis points for the remainder of the term. The bank said the notes were designed to qualify as Tier 2 capital.
"The proceeds of the offering will allow us to continue to execute our growth strategy and expansion in northern New Jersey and in the New York Metro area," Sussex President and CEO Anthony Labozzetta said in a press release Thursday.
Hogan Lovells advised Sussex.