Simsbury Bank & Trust says it will raise more than $16 million in fresh capital through the issuance of debt and stock.
The Farmington Valley lender said Monday it will employ two tracks to raise about $16.125 million, some proceeds of which will redeem preferred stock issued some time back to the U.S. Treasury.
Treasury staked at least $9 million to enable Simsbury Bank to participate in the Small Business Lending Fund program, and to support its recent West Hartford expansion. In exchange, the bank handed Treasury about $9 million of Series C preferred that it now ready to redeem.
About $7.5 million of funds to be raised will come through issuing subordinated debt with an identified institutional investor, President and CEO Martin J. Geitz said.
In addition, the bank said it filed a registration statement with federal securities regulators covering a planned sale of up to $8.625 million in a secondary offering of common stock.
Keefe, Bruyette & Woods is sole underwriter for the stock offering.
