GrandSouth Bancorporation completes private placement of $10 million of subordinated notes
November 25, 2018
GrandSouth Bancorporation, the holding company for GrandSouth Bank, completed a private issuance of 6.50% Fixed-to-Floating Subordinated Term Notes, in the principal amount of $10 million. Unless prepaid earlier, the notes mature on November 30, 2028.
The notes are intended to qualify as Tier 2 capital under the capital guidelines of the Federal Reserve Board. The Company intends to use the net issuance proceeds for general corporate purposes, including a capital contribution to the Bank to support its continued organic growth. The portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank.
Mason Y. Garrett, Chief Executive Officer, commented, “We are excited about this issuance, which is intended to support our anticipated strong pace of quality asset growth. We are pleased to enter the new year in a position to continue our expansion in South Carolina.”
FIG Partners, LLC served as the sole placement agent for the note issuance. Haynesworth Sinkler Boyd, PA served as legal counsel to the Company.
About GrandSouth Bancorporation and GrandSouth Bank
GrandSouth Bancorporation is the financial holding company for GrandSouth Bank, which operates six offices in the Greenville, Columbia, Orangeburg, Anderson, Fountain Inn, and Greer markets of South Carolina as well as a loan production office in Charleston, South Carolina. Additional information can be found on GrandSouth’s website at www.grandsouth.com.
