Loan & DebtNov 6, 2026, 04:21 PM
NB Bancorp Completes $100M Subordinated Notes Offering
AI Summary
NB Bancorp, Inc. announced the completion of its private placement of $100 million in aggregate principal amount of 7.50% Fixed-to-Floating Rate Subordinated Notes due 2036. The net proceeds, estimated at approximately $98.26 million, will be utilized for general corporate purposes, including bolstering liquidity, enhancing capital ratios, funding potential dividends, and supporting stock repurchases. The notes carry a fixed interest rate for the initial five years, after which they will float based on SOFR plus 305 basis points. The issuance is intended to qualify as Tier 2 capital, and the notes received a BBB- rating from Kroll Bond Rating Agency.
Key Highlights
- NB Bancorp, Inc. completed a private placement of $100 million in 7.50% Fixed-to-Floating Rate Subordinated Notes due 2036.
- The net proceeds from the offering are estimated to be approximately $98.26 million.
- Proceeds will be used for general corporate purposes, including supporting liquidity, capital ratios, dividends, and stock repurchases.
- The notes mature on November 15, 2036, with a fixed rate for the first five years, then resetting to SOFR + 305 basis points.
- The Subordinated Notes are intended to qualify as Tier 2 capital for regulatory purposes.
- Kroll Bond Rating Agency assigned a BBB- rating to the notes.
- Piper Sandler & Co. served as the sole placement agent for the offering.
Price Impact
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