By Rabia Arif
Cambridge, Md.-based Delmarva Bancshares Inc., the holding company of 1880 Bank, on July 2 filed a Form D related to a debt offering totaling approximately $4.1 million.
The Form D filing indicates that the company has already sold the securities to three investors. The first sale took place June 30. The minimum investment accepted from any outside investor was $1.0 million.
“We refinanced our sub debt and dropped the rate by 300 basis points,” Delmarva Bancshares Chairman, President and CEO Kim Liddell explained. The move took 38 local retail investors “out of play,” leaving just three institutional investors. This will be more efficient and will save the company “a significant amount of money,” he told SNL. Liddell declined to disclose the identities of the institutional investors.
“It was just a refinance to protect ourselves from [rising rates],” he said.
The company paid sales commissions of $100,000 for the offering, according to the Form D. The filing listed Raymond James & Associates Inc. as the recipient of the sales compensation.