Us Metro Bancorp’s $10 Million Private Placement

Janney Montgomery Scott, LLC served as sole placement agent for the private offering, and Sheppard Mullin, Richter, & Hampton LLP served as the Company’s legal counsel. Godfrey & Kahn SC provided legal counsel to the placement agent in connection with the offering.

US Metro Bancorp (OTC Pink: USMT), the holding company for US Metro Bank,

announced that it has completed a private placement of $10 million in aggregate principal amount of subordinated notes to certain qualified institutional and other accredited investors. The Company intends to use the net proceeds of the notes offering to support organic growth, to fund future acquisitions and for general corporate purposes, including investments in its banking subsidiary.

The notes will initially bear interest at a rate of 5.25% per annum from and including March 31, 2020, to but excluding March 31, 2025, with interest during this period payable semi-annually in arrears. From and including March 31, 2025 to but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly to an annual floating rate equal to the three-month LIBOR, or an alternative rate determined in accordance with the terms of the notes if the three-month LIBOR cannot be determined, plus 4.68%, with interest during this period payable quarterly in arrears. US Metro may redeem the notes, in whole or in part, on or after March 31, 2025 or, in whole but not in part, under certain limited circumstances set forth in the notes. The notes are not subject to redemption at the option of the holders. The notes are structured to qualify as tier 2 capital for regulatory capital purposes.

US Metro Bancorp is the bank holding company for US Metro Bank, a California chartered, full service commercial nonmember bank headquartered in Garden Grove, California with six branch offices in California – Garden Grove, Anaheim, Buena Park (Fullerton Branch), Koreatown/Los Angeles, Fashion District/Los Angeles, Torrance and loan production offices in Dallas, Seattle, New York City and Atlanta.

The Sheppard Mullin team included partners David Gershon (Picture) and Jordan Hamburger.

Involved fees earner: David Gershon – Sheppard Mullin; Jordan Hamburger – Sheppard Mullin;

Law Firms: Sheppard Mullin;

Clients: US Metro Bancorp;

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Author: Ambrogio Visconti