Investment Banking - Orrstown Financial Services, Inc.

Transactions | Banking

boenning investment banking orrstown

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

  • Orrstown Financial Services, Inc. (“Orrstown”), and its wholly-owned subsidiaries, Orrstown Bank and Wheatland Advisors, Inc., provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York counties, Pennsylvania and Washington County, Maryland.
  • As of September 30, 2018, Orrstown had assets of approximately $1.7 billion with 26 full-service branch banking offices. Pro forma for its recently completed acquisition of Mercersburg Financial Corporation and its pending acquisition of Hamilton Bancorp, Inc., Orrstown is expected to have approximately $2.5 billion in assets, $1.7 billion in loans and $2.1 billion in deposits.
  • On December 19, 2018, Orrstown issued $32.5 million in subordinated notes (the “Notes”) in a private placement to certain institutional accredited investors.
  • The Notes bear a fixed-to-floating interest rate of 6.0% per annum for an initial five years and then will float at 316 basis points over three-month LIBOR until maturity in 2028. The Notes include the right of prepayment after December 19, 2023.
  • The Notes are rated BBB- (Kroll Bond Rating Agency).
  • Orrstown intends to use the net proceeds of the offering for general corporate purposes.
  • Boenning served as sole placement agent in the offering.