Burke & Herbert Financial Services Corp. Prices $100.0 Million Subordinated Notes Offering
Burke & Herbert Financial Services Corp. announced the pricing of its public offering of $100.0 million aggregate principal amount of 7.00% Fixed-to-Floating Rate Subordinated Notes due 2036. The notes mature on October 1, 2036, carry a fixed 7.00% rate until October 1, 2031, after which they convert to a floating rate based on Three-Month Term SOFR plus 222 basis points, and are intended to qualify as Tier 2 capital.
Why it matters — This offering represents a capital-raising move for BHRB, with the notes intended to qualify as Tier 2 regulatory capital at the holding company level.