NEWS RELEASE For Immediate Release
June 23, 2021
Contact: Dan R. Ellis, Jr
Southern BancShares (N.C.), Inc.
919.658.7082
MOUNT OLIVE, N.C.–(PR NEWS WIRE)—Southern BancShares (N.C.), Inc. (the “Company”) (OTC Pink: SBNC), the holding company for Southern Bank and Trust Company (the “Bank”), announced today that it has completed the private placement of $80 million of 3.125% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”) to qualified institutional buyers and accredited investors. Until June 30, 2026, the Notes will bear interest at a fixed annual rate of 3.125%, payable semi-annually in arrears. Thereafter, the Notes will bear interest at a floating rate equal to the three-month term SOFR plus 241 basis points, payable quarterly in arrears.
The Notes are structured to qualify as Tier 2 capital for regulatory purposes. The Company intends to use the net proceeds of the offering for general corporate purposes. The Company may redeem the Notes in whole or in part, beginning on June 30, 2026, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest. Note holders have no redemption rights.
Raymond James & Associates, Inc. served as the exclusive placement agent for the Notes offering. Ward and Smith, P.A. served as legal counsel to the Company and Wyrick Robbins Yates & Ponton LLP served as legal counsel to the placement agent.
This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The notes offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws. The indebtedness evidenced by the notes are not deposits and are not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.
About Southern BancShares (N.C.), Inc.
The Company is headquartered in Mount Olive, North Carolina and is the holding company for the Bank, which was founded in 1901 and maintains 59 branches located in eastern North Carolina and southeastern Virginia.