First Business Financial Services, Inc. announced a private placement and issued 8% subordinated debentures for gross proceeds of $15 million on September 29, 2023. The transaction included participation from certain accredited investors. The debentures are issued in a private placement exempt from registration under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D. The debentures matures on September 29, 2033, and will bear interest at a fixed rate of 8% per annum for their entire term. The company is entitled to redeem the Notes, in whole or in part, at any time after September 29, 2028, and to redeem the debenture at any time in whole upon certain other events, at a redemption price equal to 100% of the outstanding principal amount of the debenture to be redeemed plus any accrued and unpaid interest up to, but excluding, the redemption date.
The company has received $15,000,000 from 25 investors pursuant to Regulation D.