GLENWOOD SPRINGS, Colorado, June 11, 2020 (GLOBE NEWSWIRE) -- Alpine Banks of Colorado (OTC Pink: ALPIB) (the "Company"), the holding company of Alpine Bank, a Colorado-based community bank, announced today that it has completed the private placement of $50 million in fixed-to-floating rate subordinated notes due 2030 (the "Notes") to certain qualified institutional buyers and institutional accredited investors. The Notes have been structured to qualify as Tier 2 capital at the Company level for regulatory purposes, and the Company intends that proceeds from the sale of the Notes will be utilized for general corporate purposes.
The Notes will initially bear interest at a fixed rate of 5.875% per annum until June 15, 2025, payable semi-annually in arrears. For the remainder of the term or up to an earlier redemption date, the Notes, which mature on June 15, 2030, will bear an interest rate that will reset quarterly to an annual floating rate equal to the then-current three-month term Secured Overnight Financing Rate (SOFR) plus 569 basis points, payable quarterly in arrears. The Company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after June 15, 2025, and to redeem the Notes at any time in whole upon certain other specified events.
In connection with the issuance of the Notes, the Company recently obtained ratings from Kroll Bond Rating Agency ("KBRA"), a nationally recognized statistical rating organization registered with the Securities and Exchange Commission. KBRA assigned the Notes an investment grade rating of BBB-.
Piper Sandler & Co. served as the sole placement agent and was advised by Holland & Knight LLP. Alpine Banks of Colorado was advised by Lewis Roca Rothgerber Christie LLP.
The Notes have not been registered under the Securities Act of 1933, as amended (“Act”), or under the securities laws of any state, and were offered and sold pursuant to an applicable exemption from registration requirements under such Act. The Notes are not deposits and are not insured by the FDIC. This press release is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, any security.
About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $3.9 billion, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. With 40 banking offices across Colorado, Alpine Bank employs more than 750 people and serves more than 145,000 customers with personal, business, wealth management*, mortgage and electronic banking services. Alpine Bank has a 5-star rating for financial strength by BauerFinancial, Inc., the nation’s leading bank rating firm. The 5-star rating is BauerFinancial’s highest rating for financial institutions. For more information, please visit our website at www.alpinebank.com.
*Alpine Bank Wealth Management services are not FDIC insured, may lose value and are not guaranteed by the bank.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our evaluation of macro-environment risks, Federal Reserve rate management and trends reflecting things such as regulatory capital standards and adequacy. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include:
- the ability to attract new deposits and loans;
- demand for financial services in our market areas;
- competitive market-pricing factors;
- the adverse effects of public health events, such as the current COVID-19 pandemic, including governmental and societal responses;
- deterioration in economic conditions that could result in increased loan losses;
- actions by competitors and other market participants that could have an adverse impact on our expected performance;
- risks associated with concentrations in real estate-related loans;
- market interest rate volatility;
- stability of funding sources and continued availability of borrowings;
- risk associated with potential cyber threats;
- changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
- the ability to recruit and retain key management and staff;
- the ability to raise capital or incur debt on reasonable terms;
- effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.
There are many factors that could cause actual results to differ materially from those contemplated by forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
###