Bridgewater Bancshares, Inc. Completes Private Placement of $30.0 Million of 3.25% Fixed-To-Floating Rate Subordinated Notes
July 08, 2021 at 04:15 pm EDT
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Bridgewater Bancshares, Inc. announced the completion of a private placement of $30.0 million in aggregate principal amount of 3.25% fixed-to-floating rate subordinated notes due 2031 (the Notes). The Company intends to use the net proceeds of the private placement for general corporate purposes, including support for organic growth plans, support for bank level capital ratios and possible redemption or repurchase of currently outstanding indebtedness. The Notes will initially bear interest at a rate of 3.25% per annum from July 8, 2021 to July 15, 2026, with interest during this period payable semi-annually in arrears. From July 15, 2026 to the stated maturity date or early redemption date, the interest rate will be reset quarterly to an annual floating rate equal to the then current three-month term Secured Overnight Financing Rate (SOFR) plus 252 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, on or after July 15, 2026, and at any time upon the occurrence of certain events. The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes.
Bridgewater Bancshares, Inc. is a financial holding company with one wholly owned subsidiary: Bridgewater Bank (the Bank). The Bank focuses primarily on commercial lending, consisting of loans secured by nonfarm, nonresidential properties, loans secured by multifamily residential properties, nonowner occupied single family residential properties, construction loans, land development loans and commercial and industrial loans. It offers loan and deposit products primarily for commercial clients. The Bank has developed a suite of deposit products targeted at commercial clients, including a variety of remote deposit and cash management products, along with commercial transaction accounts. The Bank also offers consumers traditional retail deposit products through its branch network, along with online, mobile, and direct banking channels. The Bank has seven full-service offices located in Bloomington, Greenwood, Minneapolis (two), St. Louis Park, Orono, and St. Paul, Minnesota.