Yesterday, the Ledyard Financial Group (OTCMKTS:LFGP) stock may have been trading in a range but it may not do that forever and hence, it may be a good idea to look into the news that had emerged about the company on Tuesday.
Market Reaction
On Tuesday, LFGP stock ended flat at $24.35 with more than 200 shares, compared to its average volume of 508 shares. The stock moved within a range of $24.35 – 24.35 after opening trade at $24.35.
Ledyard Financial Group Completes $18 Million Subordinated Note Offering
The company, which is the parent company of Ledyard National Bank, announced yesterday that it had issued some institutional investors with $18 million worth of 10 year fixed to floating subordinated notes. The notes in question are going to be due on April 1, 2032 and are going to remain noncallable for five year. In the initial period, the notes are going to carry interest rate of 4%.
While the announcement was an important one from Ledyard Financial Group, it did not elicit much of a response from the investors and hence, the stock remained within a range. However, such things can change quickly and investors ought to take a closer look at the nature of the news.
The company noted that it was going to use the proceeds for certain strategic initiatives and for financing the organic growth of Ledyard Financial Group. On top of that, the proceeds are also going to be used for general administrative expenses.
Key Quote
Kathryn Underwood, CEO of Ledyard Financial Group commented, “We are delighted to have the support of our investor group at very attractive pricing. This is an important transaction for the Company. Part of the proceeds will be down-streamed to the Bank to enable additional organic growth and continued expansion. We are looking forward to the exciting opportunities ahead.”
Traders Review
LFGP stock is trading below the 20-Day and 50-Day Moving averages of $24.64 and $24.95 respectively. Moreover, the stock is trading below the 200-Day moving average of $25.16.
