Brooks Pierce partner Bob Singer recently represented Oak Ridge Financial Services Inc., parent company of Bank of Oak Ridge, and UB Bancorp, parent company of Union Bank, in offerings of subordinated debt enhancing the banks’ ongoing operations.
UB Bancorp completed its $25 million offering on May 29. The notes have an initial interest rate of 5.0% and will mature in 10 years. Oak Ridge Financial Services completed its $10 million offering on June 4. The notes have an interest rate of 6.25% and will mature in 2030.
The selling of subordinated debt is a common practice among bank holding companies to increase their available capital to either hedge against troubled assets amid a prolonged economic downturn or to supplement the regulatory capital of their bank subsidiaries to increase the banks’ lending capacities.
Singer has more than 40 years of experience representing financial institutions and public companies on key legal issues and is widely recognized as a leader in banking and finance law. In addition to working with a number of individual banks, he serves as counsel to the North Carolina Bankers Association.