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A Better Partnership


Apr 2021
April 19, 2021

Warner Represented Southern Michigan Bancorp, Inc. In Its Completion of $30 Million Subordinated Debt Offering

Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) (“Southern”), the holding company for Southern Michigan Bank & Trust, has completed a private placement of $30 million of fixed-to-floating rate subordinated notes due April 16, 2031. Southern intends to use the net proceeds from this placement to retire existing debt, support organic growth and for general corporate purposes.

The subordinated notes are structured as Tier 2 capital for regulatory purposes and will bear interest at a fixed rate of 3.75% per annum until April 16, 2026. After April 16, 2026 until maturity, the subordinated notes will bear interest at a rate equal to the 3-month Secured Overnight Financing Rate plus 302 basis points. The subordinated notes will mature on April 16, 2031. The subordinated notes will be redeemable by Southern at its option, in whole or in part, on or after June 30, 2026.
Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 13 branches within Branch, Calhoun, Hillsdale, Kalamazoo and St. Joseph counties, and provides a broad range of consumer, business and wealth management services throughout the region.
The Warner transaction team was led by Charlie Goode and Jeffrey Ott and included Sarah Harper and Malaina Weldy.
Warner’s Banking Law Practice Group
As part of one of the largest and most successful law firms in Michigan, the attorneys in Warner’s Banking Law Practice Group counsel banks and bank holding companies to develop capital raising strategies and to execute public offerings and private placements of securities. Our attorneys practice all aspects of banking law, including bank formations, mergers and acquisitions, strategic transactions, commercial lending, consumer credit, negotiable instruments, bank litigation, workouts and bankruptcy, leveraged leasing, antitrust and regulatory compliance.

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