Avidbank Holdings, Inc. completed a private placement of $30 million in fixed-to-floating rate subordinated notes, the company said in a statement.
The proceeds will be used to repurchase or redeem $22 million of outstanding callable subordinated notes and for general corporate purposes, according to the filing. The remaining $8 million will support broader capital management.
The notes mature on September 1, 2036, with an initial fixed interest rate of 7.00% for the first five years. After that period, the rate resets quarterly to the three-month Secured Overnight Financing Rate plus 291 basis points.
Avidbank may redeem the notes without penalty starting September 1, 2031, or on any subsequent interest payment date, or earlier under specified events. The offering is structured to qualify as Tier 2 capital under regulatory standards, strengthening the bank’s capital position.
Piper Sandler & Co. served as the sole placement agent for the private offering. Legal representation was provided by Manatt, Phelps & Phillips, LLP for Avidbank and Davis Polk Wardwell, LLP for Piper Sandler & Co. The notes are not registered under the Securities Act of 1933 and are not FDIC-insured.
Avidbank, headquartered in San Jose, California, operates through its subsidiary Avidbank, which focuses on commercial and industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, fund finance, real estate construction, and commercial real estate lending.
