Katahdin Bankshares Corp. Completes $14.5 Million Senior Note Offering

HOULTON, Maine, June 13, 2019 /PRNewswire/ -- Katahdin Bankshares Corp. (OTCQX: KTHN), the parent company of Katahdin Trust Company, announced today that it has completed the private placement of $14.5 million in fixed rate senior notes due 2026 (the "Notes").  The proceeds from the sale of the Notes will be utilized to redeem approximately $10 million of Series D Preferred Stock of the holding company, and for general corporate purposes.

The Notes will bear interest at 5.375% per annum, beginning December 15, 2019 through June 15, 2026, payable semi-annually in arrears.  The Notes will not be redeemable through the maturity date of June 15, 2026.

Sandler O'Neill + Partners, L.P., served as the sole placement agent and was advised by Goodwin Procter LLP.  Katahdin Bankshares Corp. was advised by Verrill Dana, LLP.

The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security.

About Katahdin Bankshares Corp.

Katahdin Bankshares Corp. is headquartered in Houlton, Maine and has total assets of $800.1 million and total shareholder's equity of $72.9 million as of March 31, 2019.  Its subsidiary Katahdin Trust Company was founded in 1918 and has sixteen banking offices that operate throughout Maine. Katahdin Bankshares Corp. common stock is quoted on the OTCQX market under the ticker symbol KTHN. Further information about the Company and Katahdin Trust can be found at www.KatahdinTrust.com or by following Katahdin Trust on Facebook, Twitter, LinkedIn, and Instagram.

Forward Looking Statements

Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 21A of the Securities Exchange Act of 1934.  Forward-looking statements, which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms.  Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, changes in the financial and securities markets, including changes with respect to the market value of our financial  assets, and the availability of and costs associated with sources of liquidity.  The Company undertakes no obligation to update or carry forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Katahdin Bankshares Corp.