Investment Banking - Farmers & Merchants Bancorp, Inc.
Transactions | Banking
Client: Farmers & Merchants Bancorp, Inc.
Transaction Type: Subordinated Notes
Role: Sole Placement Agent
Farmers & Merchants Bancorp, Inc. Announces Completion
of $35.0 Million Subordinated Note Offering
- Farmers & Merchants Bancorp, Inc. (NASDAQCM: FMAO) (the “Company”) is a bank holding company headquartered in Archbold, Ohio with total consolidated assets of $2.2 billion as of June 30, 2021. The Company’s subsidiary, Farmers & Merchants State Bank (the “Bank”), was established in 1897 and serves the financial needs of individuals, farmers, businesses, and industries by offering traditional banking products, as well as online, mobile, and telephone banking products in Northeast Indiana, Northwest Ohio, and Southern Michigan.
- On August 2, 2021, the Company announced the completion of a private placement of $35.0 million in an aggregate principal amount of its 3.25% Fixed-To-Floating Rate Subordinated Notes due July 30, 2031 (the “Notes”) to various qualified institutional buyers and accredited investors (the “Offering”).
- The Notes will initially bear a fixed interest rate of 3.25% for five years, after which time until maturity on July 30, 2031, the interest rate will reset quarterly to an annual floating rate equal to the Three-Month Term SOFR (as defined in the Notes), plus a spread of 263 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after the five-year anniversary. The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws.
- The Company intends to use the net proceeds from the Offering for general corporate purposes, including financing acquisitions, organic growth, and investments in the Bank and other subsidiaries for regulatory capital purposes.
- Boenning & Scattergood served as Sole Placement Agent in the transaction.