US Metro Bancorp, Inc. (OTCPK:USMT) announced a private placement of subordinated notes for a gross proceeds of $10,000,000 in March 31, 2020. The transaction included participation from certain qualified institutional and other accredited investors. The notes will carry a coupon rate of 5.25% per annum from and including March 31, 2020, to but excluding March 31, 2025, with interest during this period payable semi-annually in arrears. From and including March 31, 2025 to but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly to an annual floating rate equal to the three-month LIBOR, or an alternative rate determined in accordance with the terms of the notes if the three-month LIBOR cannot be determined, plus 4.68%, with interest during this period payable quarterly in arrears. The company may redeem the notes, in whole or in part, on or after March 31, 2025 or, in whole but not in part, under certain limited circumstances set forth in the notes. The company issued notes at par. The notes are not subject to redemption at the option of the holders. The notes are structured to qualify as tier 2 capital for regulatory capital purposes. The company received funding from 9 investors pursuant to Regulation D.