St. Paul, Minn. | July 12, 2021 – Plato Holdings, Inc., the parent company of Drake Bank, announced the closing of its privately placed $5 million fixed-to-floating rate subordinated debentures. The Plato Holdings, Inc. 2021 Series A Subordinated Debentures (CUSIP US 72767WAA99) have a maturity date of July 1, 2031, and carry a fixed rate of interest of 4.125% for the first five years. After that, the debentures will pay interest at a floating rate, reset quarterly, equal to the then-current three-month SOFR plus 330 basis points. The debentures may be redeemed at the option of Plato Holdings, Inc., without penalty, on or after July 1, 2026.
“We are pleased with the successful completion of the subordinate debentures offering,” said Greg Larson, President & CEO of Plato Holdings, Inc. and Drake Bank. “Our team put in a great deal of work preparing for this success. We are especially grateful for the confidence and support of our investment partners. The additional capital allows us to strengthen our business initiatives and growth trajectory while expanding our assistance to our local community. In addition, we hope our community sees the investment as evidence of our long-term commitment to independence and service.”
Plato Holdings, Inc. has injected the additional capital into Drake Bank’s surplus capital account, thereby increasing the Bank’s capacity for continued deposit growth and extension of credit within regulatory concentration limits. The additional capital has increased the Bank’s legal lending limit to $3,040,000 and regulatory capital to over 9%, supporting the Bank’s significant growth through 2020 and 2021.
No broker or agent was involved in the offering. Winthrop & Weinstine, P.A. of Minneapolis, Minnesota, advised Plato Holdings, Inc. on the issuance.
Drake Bank is a purpose driven independent bank in St. Paul. We were founded in 2002 by a group of successful entrepreneurs committed to helping others succeed for the shared prosperity of their community. Our 70+ founders invested their own money to fund the first business loans and many are still shareholders today. Start building a better future. Learn more at drake-bank.com.
