Bank issues notes to aid growth
From Contributed Reports
Monday, March 4, 2019
First Carolina Financial Services Inc., parent company of First Carolina Bank, announced last week the completion of a private placement of mandatory convertible subordinated notes to local accredited investors.
The notes will pay interest quarterly at 4 percent for three years until they automatically convert to First Carolina common stock based on a per-share conversion price determined in accordance with the notes’ terms. Gross proceeds to the company were $18,550,000 before deducting nominal legal expenses of the offering.
First Carolina intends to use proceeds from the private placement for general corporate purposes, to include enhancing the bank’s capital ratios, supporting growth of the franchise and other strategic purposes management may determine in the future.
“As the fastest growing bank in North Carolina in 2018, we have managed remarkable organic growth in our franchise while maintaining a position as one of the safest banks overall in the country,” President and CEO Ronald A. Day said. “We believe this additional capital will allow us to continue to take advantage of the strong customer demand for our business model.
“The support we have received from our investors has been outstanding, and it is evidence of their belief in the positive momentum and tangible results we are producing at First Carolina.”
First Carolina Financial Services Inc. is the registered bank holding company of First Carolina Bank, a North Carolina state-chartered bank headquartered in Rocky Mount with more than $500 million in total assets. First Carolina Bank has full-service banking offices in Rocky Mount, Raleigh and Reidsville and a loan production office in Wilmington.
To learn more about First Carolina and its subsidiary bank, go to www.firstcarolinabank.com.