Bridgewater Bancshares, Inc. Completes $50M Private Placement of Subordinated Notes
The Barack Ferrazzano Financial Institutions Group acted as legal counsel to Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), in the completion of a private placement of $50.0 million in aggregate principal amount of 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the Notes). The Company plans to use the proceeds for general corporate purposes, including supporting regulatory capital ratios and investing in the Bank.
Initially the Notes will bear interest at a rate of 5.25% per annum from June 19, 2020 to July 1, 2025, with interest during this period payable semiannually in arrears. From July 1, 2025 to the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate plus 513 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, on or after July 1, 2025, and at any time upon the occurrence of certain events. The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes.
The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. This release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation (FDIC) or any other government agency or fund.
Barack Ferrazzano’s team was led by Joseph T. Ceithaml and Nicholas M. Brenckman.
About Bridgewater Bancshares, Inc.
Bridgewater Bancshares, Inc. is a financial holding company headquartered in Bloomington, Minnesota. The Company has two wholly owned subsidiaries, Bridgewater Bank, a Minnesota-chartered commercial bank founded in November 2005, and Bridgewater Risk Management, Inc., a captive insurance company founded in December 2016. The Bank has seven locations across the Minneapolis-St. Paul-Bloomington metropolitan statistical area, offering a full array of simple quality loan and deposit products, primarily for commercial clients.
To learn more, visit: https://bridgewaterbankmn.com/about-bridgewater