Investment Banking - Community Heritage Financial, Inc.

Transactions | Banking

Client: Community Heritage Financial, Inc.
Industry: Banking
Transaction Type: Subordinated Notes Offering
Role: Sole Placement Agent

Community Heritage Financial, Inc. Completes $15.0 Million Subordinated Debt Offering

  • Community Heritage Financial, Inc. (the “Company”) (OTC PINK: CMHF) is the parent company for its wholly owned subsidiaries, Middletown Valley Bank and Millennium Financial Group, Inc.
  • Middletown Valley Bank is a full-service commercial and retail bank with seven locations in Frederick County and Washington County, Maryland. Millennium Financial Group, Inc. (d/b/a Mlend) is a full-service mortgage lender headquartered in Middletown, Maryland with locations in Crofton and Oakland. As of June 30, 2019, Community Heritage Financial, Inc. had total assets of $476.5 million.
  • On October 18, 2019, the Company announced the completion of a private placement of $15.0 million in aggregate principal amount of 5.75% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “Notes”).
  • The Notes will bear interest at a fixed rate of 5.75% per annum for an initial five years and then will float at 439.5 basis points over three-month LIBOR until maturity in 2029. The Notes are redeemable by the Company at its option, in whole or in part, on any interest payment date on or after October 30, 2024.
  • The Company intends to utilize the net proceeds for general corporate purposes and the Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes.
  • Boenning & Scattergood, Inc. served as sole placement agent in the offering.

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