Financing ·
NB Bancorp raises $100M via 7.50% fixed-to-floating subordinated notes due 2036
NBBKNB Bancorp, Inc.
NB Bancorp, Inc. completed a private placement of $100 million in aggregate principal amount of its 7.50% Fixed-to-Floating Rate Subordinated Notes due November 15, 2036. The notes were sold at par to qualified institutional buyers and accredited investors, generating net proceeds of approximately $98.3 million after expenses. Interest accrues at a fixed annual rate of 7.50%, payable semi-annually in arrears through November 15, 2031, after which the rate resets quarterly to three-month SOFR plus 305 basis points. The company intends to use net proceeds for general corporate purposes, including supporting liquidity and bank capital ratios, while initially contributing at least $30 million to its subsidiary, Needham Bank. NB Bancorp operates as a bank holding company conducting banking operations through Needham Bank.