FRANKLIN, N.J., July 2, 2007 (PRIME NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX) announced today that it had completed an offering of trust preferred securities to a pooled investment vehicle sponsored by Cohen & Company. The Company, through its Sussex Capital Trust II subsidiary, sold $12.5 million in the trust preferred securities. These securities have a floating interest rate equal to three month LIBOR plus 144 basis points, which resets quarterly. The initial interest rate is 6.80%. The securities mature on September 15, 2037, and may be called at par by the Company any time after September 15, 2012. The securities were placed in a private transaction exempted from registration under the Securities Act of 1933, as amended.
Sussex Bancorp intends to use the proceeds from the sale of these securities to redeem $5.0 million in its existing trust preferred securities, which bear an interest rate of 9.01%, for general corporate purposes and to bolster the regulatory capital ratios of its subsidiary, Sussex Bank, and to fund its continued growth.
Sussex Bancorp is the holding company for Sussex Bank, a New Jersey chartered commercial bank operating though eight offices located in Sussex County, New Jersey, and two offices in Orange County, New York and of Tri-State Insurance Agency, Inc., a full service insurance agency located in Augusta, New Jersey.