Release date: November 4, 2020
Hyannis, MA – The Cape Cod 5 Mutual Company (the “Company”), the mutual holding company for the Cape Cod 5 Cents Savings Bank (the “Bank”), announced today the completion of its private placement of $50.0 million in fixed-to-floating rate subordinated notes due 2030 (the “Notes”). The Notes bear a fixed rate of 3.75% for the first 5 years and will reset quarterly thereafter to the then current three-month SOFR rate plus 357 basis points.
The Company intends to use the net proceeds from the offering for general corporate purposes including the support of capital levels and organic growth. The notes are intended to qualify as Tier 2 capital for the Company for regulatory purposes and the portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank.
“We are pleased that the offering was received so well, which allowed us to generate this additional capital at such an attractive interest rate to fund our future organic growth,” said Dorothy Savarese, Chair & CEO of Cape Cod 5. “We remain committed to our mutuality, and this additional capital supports our financial strength to continue our mission of serving as our customers’ trusted advisor, contributing to the health and vitality of our communities and being a responsible employer for our 550 employees.”
Piper Sandler Companies served as the sole placement agent for the offering and was advised by Cranmore, FitzGerald, and Meaney. The Company was advised by Goodwin Procter LLP.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Notes 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 any such jurisdiction. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation (the “FDIC”) or any other government agency or fund.