University Bancorp Raises $25M in Subordinated Notes at 8.125%
UNIB sits 68% above its 52-week low of $12.935 on light trading volume (0.2× avg).
Summary
University Bancorp closed a $25M private placement of subordinated notes due 2036. The notes pay 8.125% fixed for five years, then float at SOFR+355 bps, but a 5-year swap at 4.70% effectively fixes years 6–10 near 8.25%. Proceeds will fund general purposes, including bank equity and redemptions. This is a meaningful capital raise relative to the company's $112M market cap, boosting regulatory capital and liquidity. The call option from Oct 30, 2031 provides refinancing flexibility. The deal follows a strategic FinTech alliance announced on September 16, suggesting ongoing balance sheet strengthening.
At the time of this announcement, UNIB was trading at $21.79 on OTC in the Finance sector, with a market capitalization of approximately $112.6M. The 52-week trading range was $12.94 to $24.61. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Wiseek News.