Katahdin Bankshares Corp. Announces Offer to Repurchase 5.375% Fixed Senior Unsecured Notes

Katahdin Bankshares Corp. (OTCQX: KTHN) has announced an offer to repurchase its outstanding 5.375% Fixed Senior Unsecured Notes due June 15, 2026.

Rhea-AI Summary

Katahdin Bankshares Corp. (OTCQX: KTHN) has announced an offer to repurchase its outstanding 5.375% Fixed Senior Unsecured Notes due June 15, 2026. The notes, currently held by nine institutional investors, total $14.5 million in aggregate principal amount. The company is offering to repurchase at par value plus accrued unpaid interest. The repurchase will be funded through a special dividend from Katahdin Trust Company and is set to close on December 16, 2024. The transaction has been reported to relevant bank regulatory agencies and is not considered material to the bank's financial condition.

Positive

• Strategic debt management through note repurchase offer
• No premium payment required for repurchase, offering at par value
• Transaction not materially impacting bank's financial condition

Negative

• Reduction of $14.5 million in working capital due to note repurchase
• Special dividend required from Katahdin Trust Company to fund repurchase

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOULTON, Maine, Nov. 1, 2024 /PRNewswire/ -- Katahdin Bankshares Corp. (OTCQX: KTHN), parent company of Katahdin Trust Company, has extended an offer to repurchase any or all of its outstanding 5.375% Fixed Senior Unsecured Notes having a maturity date of June 15, 2026. 

These notes presently are held of record by nine institutional investors, in an aggregate principal amount of $14.5 million.  The offered repurchase price equals the principal amount of each note, without discount or premium, plus all accrued but unpaid interest thereon.  The contemplated note repurchases will be funded by a special dividend from Katahdin Trust Company, are not considered material to the financial condition of the bank, and are being made after notice to relevant bank regulatory agencies.

Closing presently is scheduled for December 16, 2024.

About Katahdin Bankshares Corp. 
Katahdin Bankshares Corp. is the bank holding company of Katahdin Trust Company. Founded in 1918, Katahdin Trust is a community bank based in Houlton, Maine with 16 locations and more than $1.05 billion in assets. Katahdin Bankshares Corp. common stock is quoted on the OTC Markets (OTCQX) under the symbol KTHN. Learn more about the Company and its subsidiary bank at www.katahdintrust.com and follow Katahdin Trust on social media.

View original content:https://www.prnewswire.com/news-releases/katahdin-bankshares-corp-announces-offer-to-repurchase-5-375-fixed-senior-unsecured-notes-302293627.html

SOURCE Katahdin Bankshares Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the repurchase price for Katahdin Bankshares Corp's (KTHN) 5.375% Notes?

The repurchase price equals the principal amount without discount or premium, plus all accrued but unpaid interest.

When will Katahdin Bankshares Corp's (KTHN) note repurchase close?

The note repurchase is scheduled to close on December 16, 2024.

What is the total value of notes being offered for repurchase by Katahdin Bankshares (KTHN)?

The aggregate principal amount of notes being offered for repurchase is $14.5 million.

When do Katahdin Bankshares Corp's (KTHN) 5.375% Fixed Senior Unsecured Notes mature?

The notes have a maturity date of June 15, 2026.