LURAY, Va., Nov. 23, 2015 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (OTC Pink: BRBS), parent company of Blue Ridge Bank, announced today the completion of a private placement of $10.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes to certain institutional accredited investors. Unless earlier redeemed, the notes will mature on December 1, 2025 and bear interest at a fixed rate of 6.75% for the first five years, and thereafter will bear a floating interest rate.
The Company plans to use the net proceeds from the sale of the subordinated notes to redeem the 4,500 shares outstanding of its Senior Non-Cumulative Perpetual Preferred Stock, Series A that were originally issued to the United States Department of the Treasury under the Small Business Lending Fund (subject to regulatory approval), to support growth, and for general corporate purposes. The subordinated notes have been structured to qualify as Tier 2 capital for regulatory purposes.
"The issuance of this debt allows us to take advantage of a favorable environment for community banks to access the capital markets," said Brian K. Plum, President and Chief Executive Officer. "We should be able to repay our SBLF preferred stock while also gaining additional capital to support continued organic growth and potential strategic opportunities that could develop. We believe this addition of capital at these rate levels will provide long-term value to the Company and its shareholders."
Sandler O'Neill + Partners, L.P. served as the sole placement agent for the private offering and was advised by Covington & Burling LLP and LeClairRyan, A Professional Corporation served as legal counsel for the Company.
About Blue Ridge Bankshares, Inc.
Blue Ridge Bankshares, Inc. is a single-bank holding company headquartered in Luray, VA. Chartered in 1893 as the Page Valley Bank of Virginia, today Blue Ridge Bank has additional branches in Shenandoah, McGaheysville, Charlottesville, and Harrisonburg. Celebrating 122 years as a locally owned, independent community bank, Blue Ridge Bank provides a wide range of financial services. Visit www.mybrb.com for more information.
This press release may contain "forward-looking statements" as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in interest rates, general economic conditions and legislative and regulatory policies. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this news release.
Amanda G. Story, Chief Financial Officer
SOURCE Blue Ridge Bankshares, Inc.