July 16, 2015
ServisFirst Bancshares, Inc. Announces Completion of $35 Million Subordinated Debt Offering
Birmingham, AL -
ServisFirst Bancshares, Inc. (NASDAQ: SFBS) (“ServisFirst”), the holding company for ServisFirst Bank, today announced the closing of a $34.75 million private placement of 5% Subordinated Notes due July 15, 2025 (the “Notes”).
The Notes have been sold to accredited investors and the offering was fully subscribed. ServisFirst completed the offering without an outside underwriter due in part to the recently earned investment-grade ratings from Kroll Bond Rating Agency.
ServisFirst intends to use the net proceeds from the issuance of the Notes to redeem its preferred stock, issued June 21, 2011, to the U.S. Department of the Treasury, through the Small Business Lending Fund (SBLF) program.
Tom Broughton, President and CEO, said “This new capital will allow us to redeem our preferred stock related to the SBLF without dilution to our existing shareholders. Further, tax deductible interest payments make the Notes an attractive source of capital.”