SOUTH HILL, Va., Feb. 19, 2016 /PRNewswire/ -- CCB Bankshares, Inc., (OTC Pink CZYB) parent company of Citizens Community Bank, announced today the completion of a private placement of $3.5 million in subordinated debt to certain institutional and private accredited investors. The subordinated notes bear interest at a fixed rate of 7.00%, are non-callable for five years, mature on February 18, 2026, and qualify as Tier-2 regulatory capital at the holding company.
The Company plans to use the net proceeds to redeem its remaining 1,000 shares, which equates to $1.0 million, of Series A Senior Non-Cumulative Perpetual Preferred Stock issued to the United States Department of the Treasury under the Small Business Lending Fund (regulatory approval pending), and for general corporate purposes.
"We are pleased and thankful for the response and support from the investment community. The issuance of this debt allows us to refinance our preferred stock at a lower cost of capital and provides additional capital to support future growth and operations," said James R. Black, President and Chief Executive Officer.
The Company acted as its own placement agent for the private offering and LeClairRyan, A Professional Corporation, served as legal counsel.
CCB Bankshares, Inc. is a Virginia state chartered bank holding company headquartered in South Hill, Virginia and parent company to Citizens Community Bank. It operates six branches, three in south central Virginia and three in northern North Carolina, as well as a loan production office in North Raleigh, North Carolina. For more information and additional financial data, please visit www.ccbsite.com.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Bank has no responsibility to update such forward-looking statements.
SOURCE CCB Bankshares, Inc.