Berkshire Hills Completes $75 Million Subordinated Debt Subscription
Berkshire Hills Bancorp, (NASDAQ: BHLB) has entered into a subscription agreement for a private placement of $75 million aggregate principal amount of fifteen year Fixed-to-Floating Rate Subordinated Notes due 2027. The offering is expected to close on September 28, 2012. The notes bear interest at a fixed rate of 6.875% for the first ten years. The notes convert to a variable rate of interest in the final five years and are redeemable by Berkshire during that period.
Berkshire expects to utilize the majority of the net proceeds from this offering for the cash consideration portion of the pending merger with Beacon Federal Bancorp, and to use the remaining net proceeds for other corporate purposes. The notes qualify as Tier 2 capital under federal rules for bank holding company regulatory capital.
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