Avidbank Holdings said it completed a $30 million private placement of fixed-to-floating rate subordinated notes, with proceeds earmarked primarily for the redemption of $22 million of outstanding callable subordinated debt and general corporate use.
The notes carry a 7% fixed interest rate for the first five years, after which the rate resets quarterly to the Secured Overnight Financing Rate plus 291 basis points. Maturity is set for September 1, 2036, with the bank retaining the option to redeem the notes without penalty starting September 1, 2031, or earlier under specified conditions.
The issuance is structured to qualify as Tier 2 capital for regulatory purposes, supporting Avidbank’s capital adequacy requirements. The transaction was arranged by Piper Sandler & Co. as sole placement agent, while Manatt, Phelps & Phillips advised the issuer and Davis Polk & Wardwell advised the placement agent.
The notes remain unregistered under U.S. securities laws and are not FDIC-insured, reflecting their status as unsecured subordinated debt. Avidbank, headquartered in San Jose, California, operates through its subsidiary and provides commercial lending, venture lending, structured finance and real estate construction financing.
