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Financial Institutions Group Offerings Update

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Barack Ferrazzano Advising In 18 Offerings For $1.5 Billion During Shutdown

Since COVID-related shutdowns began in March, many financial institutions have issued subordinated debt and preferred stock to help bolster their capital in the event of increased credit losses as a result of the ongoing pandemic. Increased capital may also allow institutions to take advantage of strategic alternatives when M&A activity returns to the industry.

Important To Consider Your Alternatives

As the window for issuing securities will continue to open and close depending on the market, it is important that all financial institutions evaluate their current capital status and consider whether issuing securities at this time would be in the best interests of their organization. If now is not the time to raise additional capital, it is important that each institution take certain actions so that it can move quickly if capital is necessary in the future.

Barack Ferrazzano Actively Involved In Offerings

Over the past several months, Barack Ferrazzano has been actively involved in representing issuers, underwriters and placement agents in both public and private issuances of subordinated debt and preferred stock. Since March, we have been engaged on 18 such offerings totaling over $1.5 billion in capital for the industry, many of which are still ongoing.

Not All Offerings Are The Same

Many public companies have implemented straight off-the-shelf public offerings while others have structured private placements with future registration under the securities laws. Privately held companies also have different alternatives on how to structure the offering to best suit their needs. We have assisted issuers and financial advisors in structuring these offerings to meet the marketing objectives for a successful offering, as well as to comply with the securities laws and to ensure the appropriate capital treatment of the security following the offering.

Please let us know if you would like to discuss what considerations and actions may be appropriate for your institution with regard to a possible capital transaction.

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COVID-19 Resource Center

Since the beginning of the current crisis, we have been providing our clients and the banking industry with practical guidance on the government lending programs through written materials and numerous consultations. Our task force has been immersed in everything from answering specific questions to guidance regarding avoiding potential liability pitfalls. We created a resource page (https://www.bfkn.com/covid19) for our clients and encourage them to contact us for assistance.

About Barack Ferrazzano

Barack Ferrazzano's 30-attorney Financial Institutions Group is one of the largest banking groups serving community and regional banks across the U.S. Our Firm is relationship-driven — we treat our clients like you treat your customers. When serving clients, we leverage our vast experience and knowledge of the banking industry to provide quality results at an efficient price. We are highly responsive and easy to work with, and we strive with each and every client to become its trusted legal advisor.

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