Varnum Advises Independent Bank Corporation in Private Placement of $40 Million in Subsidized Notes
Independent Bank Corporation, the holding company of Michigan-based Independent Bank, announced on May 27, 2020 that it has completed the private placement of $40 million in fixed-to-floating rate subordinated notes due 2030.
The Notes will bear a fixed interest rate of 5.95% per annum until March 31, 2025, payable semi-annually. On May 31, 2030, the Notes will be fully mature and the interest rate will reset quarterly to an annual floating rate equal to the then-current three-month term Secured Overnight Financing Rate plus 582.5 basis points, payable quarterly. The Notes can be redeemed by IBC, in whole or in part, on any interest date on or after May 31, 2025. The Notes can be redeemed in whole at any time upon certain other specified events.
Varnum attorneys Michael Wooldridge, Kim Baber, and Erin Haney represented Independent Bank Corporation in all aspects of this transaction.