Financing ·
First Keystone closes $32.5M private placement of subordinated notes to redeem existing debt
FKYSFirst Keystone Corp
First Keystone Corporation closed a $32,500,000 private placement of 7.50% fixed-to-floating rate subordinated notes due September 30, 2036. The notes were issued at par to institutional investors with Performance Trust Capital Partners as the placement agent. Interest accrues at a fixed 7.50% until September 30, 2031, then floats at Three-Month Term SOFR plus 277 basis points. Proceeds will redeem $25,000,000 of existing subordinated notes due December 31, 2030 and fund general corporate purposes. The securities qualify as Tier 2 capital under Federal Reserve Board guidelines. First Keystone Corporation operates as the holding company for a community bank providing personal and business banking services in Pennsylvania.