Mercantile Bank Corporation (NASDAQ: MBWM) announced that it has issued an additional $15 million of its 3.25% fixed-to-floating rate subordinated notes due 2032 (the “Notes”) in a private placement. The offering is an expansion of the $75 million offering completed December 15, 2021 and was completed on the same terms as the prior offering and under the existing Indenture. The Notes bear a fixed rate of 3.25% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 212 basis points. The Company intends to use the net proceeds from the offering for general corporate purposes.
“We are very pleased to have the opportunity to expand our capital raise with these additional funds,” said Robert B. Kaminski Jr., President and CEO of Mercantile. “The proceeds will further enhance our ability to capitalize on our strong commercial loan growth and current loan pipeline, which we believe will remain robust into 2022.”
Raymond James & Associates, Inc. served as the sole placement agent for the offering. Dickinson Wright PLLC served as legal counsel to the Company and Dinsmore & Shohl LLP served as legal counsel to the placement agent.
This news release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, the Notes and shall not constitute an offer, solicitation or in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.
