SAN DIEGO, Calif.–(BUSINESS WIRE)–Southern California Bancorp (OTC Pink: BCAL) (the “Company”), the holding company for Bank of Southern California, today announced that it has completed a private placement of $18 million in aggregate principal amount of fixed-to-floating rate subordinated notes to certain qualified institutional accredited investors. The Company intends to use the net proceeds of the notes offering to assist with paying cash consideration in its acquisition of CalWest Bancorp, and for general corporate purposes.
The notes will initially bear a fixed interest rate of 5.50% per annum until March 2025, after which time until maturity in March 2030, or an earlier redemption date, the interest rate will reset quarterly to an annual floating rate equal to 90-day average SOFR plus 350 basis points. The Company may redeem the notes, in whole or in part, after June 15, 2025. Any redemption will be at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest. The notes are not subject to redemption at the option of the holders. The Notes were assigned a rating of BBB by Egan-Jones Ratings Company.
Nathan Rogge, President and CEO of Southern California Bancorp, commented on the successful offering. “Our ability to close this offering during these turbulent market conditions really strengthens our balance sheet and supports our expansion in the Southern California market with the pending acquisition of CalWest Bancorp,” Rogge noted.
Duane Morris LLP served as counsel to Southern California Bancorp, and MJC Partners, LLC, served as the sole placement agent for the offering. Spierer, Woodward, Corbalis & Goldberg served as counsel to the placement agent.