BALTIMORE--(BUSINESS WIRE)--
Howard Bancorp, Inc. (the “Company”) (Nasdaq: HBMD), the parent company
of Howard Bank, today announced the completion of an offering of $25
million in aggregate principal amount of fixed-to-floating rate
subordinated notes due December 6, 2028 (the “Notes”), to certain
institutional accredited investors. The Company intends to use the net
proceeds of the offering for general corporate purposes.
“We are pleased to announce the successful completion of our
subordinated debt offering and that we were able to consummate this
transaction under favorable terms. It allows us to further strengthen
our capital position, diversify our sources of capital and position us
for continued growth in assets. We remain committed to the Greater
Baltimore business community,” said Mary Ann Scully, Chairman and Chief
Executive Officer of the Company.
The Notes have been structured to qualify initially as Tier 2 capital
for the Company for regulatory capital purposes. The Notes will
initially bear interest at a rate of 6.00% per annum from and including
December 6, 2018, to but excluding December 6, 2023, with interest
during this period payable semi-annually in arrears. From and including
December 6, 2023, to but excluding the maturity date or early redemption
date, the interest rate will reset quarterly to an annual floating rate
equal to three-month LIBOR, plus 302 basis points, with interest during
this period payable quarterly in arrears. The Notes are redeemable by
the Company at its option, in whole or in part, on or after December 6,
2023.
Egan Jones Ratings Company, a nationally recognized statistical rating
organization, assigned the Notes an investment grade rating of BBB.
Keefe, Bruyette & Woods, A Stifel Company, served as sole
placement agent for the offering. Baker, Donelson, Bearman, Caldwell &
Berkowitz, a professional corporation, served as legal counsel to the
Company and Covington & Burling LLP served as legal counsel to the
placement agent.
The offer and sale of 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
is for informational purposes only and shall not constitute an offer to
sell, or the solicitation of an offer to buy, any security, 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 such jurisdiction. 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 Howard Bancorp, Inc.
Howard Bancorp, Inc. is the parent company of Howard Bank, a
Maryland-chartered trust company operating as a commercial bank.
Headquartered in Baltimore City, Maryland, Howard Bank operates a
general commercial banking business through its 21 branches located
throughout the Greater BaltimoreMetropolitan Area. It had consolidated
assets of approximately $2.2 billion at September 30, 2018. Additional
information about Howard Bancorp, Inc. and Howard Bank are available on
its website at www.howardbank.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181206005849/en/
George C. Coffman, E.V.P. & Chief Financial Officer
Howard
Bancorp, Inc.
1-410-750-0020
Gcoffman@howardbank.com
www.howardbank.com
Source: Howard Bancorp, Inc.