Piedmont Bancorp in Peachtree Corners, Ga., plans to raise $8 million through a private placement of subordinated debt and common stock.
The company said in a press release Monday that it will issue $6 million in subordinated debt and $2 million in stock to unnamed investors. The company said that proceeds would be used to service the subordinated debt and provide capital support to its $352 million-asset Piedmont Bank.
The company said it will have total risk-based capital ratios that fell well within the "well capitalized" range following the close of the capital raise.
"We are extremely excited about the addition of new capital to assist the bank in its growth efforts," Monty Watson, Piedmont Bancorp's chairman and chief executive, said in the release. "I believe this event is a testament to the outstanding efforts of our professional bankers and our directors over the last few years."
Banks Street Partners was the placement agent; Alston & Bird was the legal counsel.
