ServBanc Secures $90 Million in Upsized Private Placement

Phoenix-based bank holding company ServBanc Holdco, Inc. has raised $90 million through an oversubscribed private placement of subordinated notes. The offering, which closed August 13, attracted more than 45 institutional investors, including banks and insurance firms, providing the company with fresh capital to fuel its acquisition strategy.

Today, 15:15· Corp and Tech· 735 reads

ServBanc Secures $90 Million in Upsized Private Placement

The capital injection arrives as ServBanc looks to scale its operations, which include a national mortgage subservicing business and a community banking franchise in Illinois. Chairman Stavros Papastavrou described the offering as a strategic milestone, noting that the funds provide balance sheet flexibility while leveraging tax-deductible financing. The notes, which mature in 2036, are intended to qualify as Tier 2 regulatory capital.

Investors will receive a fixed interest rate of 7.00% until August 2031, after which the rate will transition to a floating benchmark based on the Three-Month Term Secured Overnight Financing Rate plus 295 basis points. Adding to the company's financial profile, the issuance coincides with an investment-grade rating designation from Morningstar DBRS. Performance Trust Capital Partners served as the sole placement agent for the transaction, with legal counsel provided by Luse Gorman, PC and Hunton Andrews Kurth LLP.

ServBanc Secures $90 Million in Upsized Private Placement

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