Banesco USA Completes Oversubscribed Private Placement of $15 Million in Subordinated Notes as the Florida-Based Community Bank Positions Itself for Growth

CORAL GABLES, Fla., Dec. 29, 2020 /PRNewswire/ -- Banesco USA (the "Bank") announced today the completion of its private placement of $15.0 million of 5.50% Fixed to Floating Rate Subordinated Notes due 2030 (the "Notes") to qualified institutional buyers. The Notes will initially bear interest at a fixed annual rate of 5.50% for the first five years and will reset quarterly thereafter at the then current three-month SOFR rate plus 524 basis points. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Bank.

The Bank intends to use the net proceeds from the offering for general corporate purposes including the support of capital levels and organic growth.

"As we approach our 15-year anniversary of Banesco USA in January, we feel strongly poised for growth," says Mario Oliva, President and CEO of Banesco USA. "We are committed to serving our clients and the South Florida community."

The Bank was recently assigned an investment grade subordinated debt rating of BBB- by Kroll Bond Rating Agency, with an outlook of Stable. Signaling a positive view of the Bank, the offering was well received by the investment community, as it was oversubscribed and successfully completed at historically attractive rates, with the participation of a number of very experienced and active institutional investors in subordinated notes.

Piper Sandler & Co. served as sole placement agent for the offering. Holland & Knight served as legal counsel to the Bank and Gunster served as legal counsel to the placement agent.

This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Notes, nor shall there by any sale 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 Notes have not been registered under the Securities Act of 1933, as amended pursuant to exemptions thereunder and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. 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.

About Banesco USA
Founded in 2006 and based in Coral Gables, FL, Banesco USA is an independent Florida state-chartered bank (https://banescousa.com/OFR-Cert-of-Good-Standing.pdf) with $2.0 billion in assets as of September 30, 2020. The Bank provides services to consumers and commercial businesses and has five branches in South Florida: Coral Gables, Doral, Hialeah, Aventura and Brickell; and one in San Juan, Puerto Rico. Visit www.BanescoUSA.com for additional information.

SOURCE Banesco USA