Avidbank Completes $30 Million Subordinated Debt Offering, Plans Redeem $22 Million Notes

Avidbank Holdings, Inc. announced a private placement of $30 million in 7.00% fixed-to-floating rate subordinated notes due 2036, issued to institutional accredited investors and qualified institutional buyers. The notes initially pay 7.00% for the first five years and will reset quarterly to SOFR plus 291 basis points thereafter, with redemption flexibility for the company beginning September 1, 2031. The subordinated notes are unsecured, rank junior to senior debt, are not guaranteed by subsidiaries, and are intended to qualify as Tier 2 regulatory capital. Proceeds are earmarked to redeem or repurchase the company’s existing $22 million of 5.00% fixed-to-floating subordinated notes due 2029, after a prior $18 million repurchase and cancellation and a planned redemption of the remaining $4 million on September 30, 2026. The issuance is non-convertible, has no sinking fund, and acceleration is limited to bankruptcy scenarios; the notes are not registered under the Securities Act. The company described the offering and subsequent use of proceeds in multiple filings and press releases, noting the private nature of the transaction and ongoing cautionary statements about forward-looking risks.