Quontic Bank Acquisition Corp., the parent company of Quontic Bank, today announced the pricing and closing of a private placement of $8.0 million aggregate principal amount of fixed-to-floating rate subordinated notes.
The Notes will initially bear interest at 5.75% per annum, from and including the original issue date of the subordinated notes to but excluding September 30, 2025, payable quarterly in arrears. From September 30, 2025 through September 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 563 basis points, payable quarterly in arrears. Beginning on September 30, 2025 through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date. Any redemption will be at a redemption price equal to 100% of the principal amount of Notes being redeemed, plus accrued and unpaid interest. The Notes will mature on September 30, 2030.
Quontic's net proceeds from the offering will be used for general corporate purposes, including the ability to increase community development mortgage loan production. The capital will also allow Quontic to accelerate its mission to digitally transform to become an API first bank and fund potential future strategic opportunities to develop new innovative banking products and services.
"We are excited to announce another successful round of funding for Quontic. This capital provides us cost-efficient Tier 1 capital for the bank that further supports our mission as an adaptive digital Community Development Financial Institution ("CDFI")," said Steve Schnall, Founder/CEO and Chairman of Quontic. "In a post-COVID-19 environment, the need to embrace and become digitally focused has never been more important. We feel we are well ahead of the curve in the digital evolution of banking, a position attained through our incessant focus on driving digital innovation for our customers. This investment signifies a meaningful vote of confidence in Quontic, a platform that has embraced a transformed banking approach that adapts to the diversity of circumstances that exist in our customers' lives, while providing differentiated services to elevate their financial strength."
Performance Trust Capital Partners served as exclusive financial advisor to Quontic and sole placement agent in the Offering. Hunton Andrews Kurth LLP served as Quontic's legal counsel in the Offering.
About Quontic
Quontic is the Adaptive Digital Bank®, offering entrepreneurs, immigrants, millennials, low-income families, seniors, and others innovative banking products and services, which embrace the diversity of circumstances that exist in its customers' lives while elevating their financial strength. Quontic strives to give its customers the underdog edge by offering unique products such as its Community Development Mortgage Loan (no tax returns, W2s or pay stubs required) and more. Quontic is a privately held company based in New York, New York. Follow and connect with Quontic on Facebook and Instagram.
