SOUTHHAMPTON, PA — Quaint Oak Bancorp, Inc. (OTCQB: QNTO) announced the completion of a private offering of $12.0 million in aggregate principal amount of fixed rate subordinated notes due March 15, 2025, to certain qualified institutional buyers on March 2, 2023. The Company intends to use the net proceeds of the offering for general corporate purposes.
The Notes bear interest at a fixed annual rate of 8.50%, payable semi-annually in arrears on March 15 and September 15 of each year, beginning September 15, 2023. The Notes’ maturity date is March 15, 2025. The Company is entitled to redeem the Notes, in whole or in part, on or after March 15, 2024, and to redeem the Notes at any time in whole upon certain other events, at a redemption price equal to 100% of the outstanding principal amount of the Notes to be redeemed plus any accrued and unpaid interest to, but excluding, the redemption date.
Robert T. Strong, President and Chief Executive Officer, stated “We are very pleased to announce the completion of our $12.0 million subordinated debt offering and with the positive response we received to this transaction.”
PNC FIG Advisory, part of PNC Capital Markets LLC, served as sole placement agent for the offering. Silver, Freedman, Taff & Tiernan LLP served as legal counsel to the Company, and Pillar+Aught served as legal counsel to the placement agent.
Quaint Oak Bancorp, Inc., a Financial Services Company, is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets.
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