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Sep 2021
07
September 07, 2021

Warner Represented ChoiceOne Financial Services, Inc. in the Offering of $32.5 Million of Subordinated Notes

ChoiceOne Financial Services, Inc., the parent company of ChoiceOne Bank, today announced its completion of a private placement of $32.5 million aggregate principal amount of its 3.25% fixed-to-floating rate subordinated notes due 2031.
 
ChoiceOne Financial Services, Inc. intends to use the net proceeds from the private placement for general corporate purposes, including support for organic growth plans, possible redemption of senior debt, common stock repurchases and support for bank-level capital ratios.
 
The notes will initially bear interest at a fixed interest rate of 3.25% per annum until September 3, 2026, after which time the interest rate will reset quarterly to a floating rate equal to a benchmark rate, expected to be the then current three-month term Secured Overnight Financing Rate (SOFR) plus 255 basis points until the notes’ maturity on September 3, 2031. The notes are structured to qualify as Tier 2 capital for the company for regulatory capital purposes.
 
ChoiceOne Financial Services, Inc. is a financial holding company headquartered in Sparta, Michigan, and the parent corporation of ChoiceOne Bank, Member FDIC. ChoiceOne Bank operates 34 offices in parts of Kent, Lapeer, Macomb, Muskegon, Newaygo, Ottawa and St. Clair counties. ChoiceOne Bank offers insurance and investment products through its subsidiary, ChoiceOne Insurance Agencies, Inc.
 
Warner Norcross + Judd represented ChoiceOne Financial Services, Inc. in the offering.
 
The Warner transaction team was led by Charlie Goode and Jeffrey Ott, and included Sarah Harper and Malaina Weldy.
 
Read the full press release here.
 
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