CMUV Bancorp Announces Completion of Tender Offer for Shares of its Common Stock and Issues $7,500,000 in Subordinated Debt
El Centro, CA - (NewMediaWire) - October 26, 2021 - CMUV Bancorp (OTCQB: CMUV) (the “Company”) announced that its tender offer to purchase up to 459,052 shares of its common stock at a price per share of $13.05 expired on October 15, 2021. A total of 461,503 shares, or 20.1%, of the Company’s outstanding shares of common stock were validly tendered and accepted.
In addition, the Company successfully issued $7,500,000 in subordinated debt in an institutional private placement. Performance Trust Capital Partners, LLC acted as placement agent. A portion of the proceeds of the new debt will be used to fund the purchase of the shares of common stock tendered, with the excess after expenses to be used for general corporate purposes. Principal is due on October 26, 2031, and the debt is not redeemable for the first five years except in the event of certain unusual events. Interest only is payable prior to the due date. The interest rate is fixed for the first five years at 3.625% and thereafter floats based on the 90-Day Average SOFR + 2.63%.
“On behalf of the Board of Directors, we could not be more pleased with the results of both the tender offer and the raising of the subordinated debt. The success of this strategic endeavor could not have been accomplished without the tremendous effort by the teams at Performance Trust, the Breakwater Law Group, and Duane Morris LLP, which acted as legal counsel to Performance Trust.”
About CMUV Bancorp
CMUV Bancorp is the parent company of Community Valley Bank which began operations on October 1, 2007. CVB was started by a group of local small business owners with the idea of bringing community banking back to the Imperial Valley. CVB had an original plan to provide individualized banking to the business community; local people, making local decisions to help businesses grow and prosper. For more information, visit www.yourcvb.com.
Certain statements in this press release are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1943, as amended, and CMUV Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward looking statement contained in the Private Securities Litigation Reform Act of 1995. CMUV Bancorp cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include the effects of the COVID-19 pandemic and related government actions on CVB and its customers, loan losses, economic conditions and competition in the geographic and business areas in which CVB operates, the effects of bank mergers and acquisitions in CVB’s markets, CVB’s ability to attract and retain key employees, system failures and internet security, inflation, fluctuations in interest rates, legislation and governmental regulation, including government regulation affecting the ability of CVB to pay dividends. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. You should not place undue reliance on forward‐looking statements and CMUV Bancorp undertakes no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.
Jon A. Edney