JOHNSTOWN, Pa., Jan. 4, 2016 /PRNewswire/ -- AmeriServ Financial,
Inc. (NASDAQ: ASRV) announced that it successfully completed a
private placement of $7.65 million in
aggregate principal amount of fixed rate subordinated notes to
certain accredited investors. The subordinated notes mature
December 31, 2025 and will have a
6.50% fixed interest rate for the entire term. This
subordinated debt has been structured to qualify as Tier 2 capital
under the Federal Reserve's capital guidelines and will be
non-callable for 5 years. The Company expects to use the
proceeds from this private placement and other cash on hand to
redeem all $21 million of its issued
and outstanding SBLF preferred stock prior to the upcoming dividend
rate increase from 1% to 9% in February
2016.
"The successful issuance of the subordinated notes provides us
with a source of low-cost capital that is non-dilutive to our
common shareholders," stated Jeffrey A.
Stopko, President and Chief Executive Officer. "Our
Company is well positioned from a capital standpoint to continue
our business growth strategies while addressing the negative impact
that an increased SBLF dividend rate would have on our financial
performance."
AmeriServ Financial, Inc. is the parent of AmeriServ Financial
Bank and AmeriServ Trust and Financial Services Company in
Johnstown, PA. The Company's
subsidiaries provide full-service banking and trust and wealth
management services through seventeen community offices in
southwestern Pennsylvania. At September 30, 2015, AmeriServ had total assets of
$1.1 billion, a book value of
$5.21 per common share and a tangible
book value of $4.58 per common
share.
Griffin Financial Group, LLC acted as financial advisor and
placement agent to AmeriServ.
Forward-Looking Statements
This news release contains forward-looking statements as defined in
the Securities Exchange Act of 1934 and is subject to the safe
harbors created therein. The forward-looking statements contained
herein include, but are not limited to, information regarding the
AmeriServ's redemption of its SBLF Preferred Stock and future
payment obligations. These forward-looking statements involve risks
and uncertainties that could cause AmeriServ's results to differ
materially from management's current expectations. Such risks and
uncertainties are detailed in AmeriServ's filings with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31,
2014. Forward-looking statements are based on the beliefs
and assumptions of AmeriServ's management and on currently
available information. The statements in this press release are
made as of the date of this press release, even if subsequently
made available by AmeriServ on its website or otherwise. AmeriServ
undertakes no responsibility to publicly update or revise any
forward-looking statement.
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SOURCE AmeriServ Financial, Inc.