- Dime Community Bancshares (NASDAQ:DCOM) priced its offering of $160M of its 5.000% fixed-to-floating rate subordinated notes due 2032.
- The notes will initially bear interest at 5% annually with interest payable semiannually in arrears, commencing on the issue date, to, but excluding, May 15, 2027.
- After that date, the interest rate on the notes will reset quarterly to a floating rate per annum equal to a benchmark rate that is expected to be 3-month term SOFR plus 218 basis points, with interest payable quarterly in arrears.
- The company may redeem the notes, in whole or in part, on and after May 15, 2027, at a price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest.
- The notes will mature on May 15, 2032 if they are not earlier redeemed.
- Transaction is expected to close on or about May 6, 2022.
- Net proceeds to be used for general corporate purposes, which include repayment of the outstanding principal amount of the company's outstanding subordinated notes and subordinated debentures.