CW BANCORP (OTCMKTS:CWBK) Stock Gains Momentum: Moves Up 4%

CW BANCORP (OTCMKTS:CWBK) was up 4% after the Commerce West Bank parent company announced the closing of a $17.5 million private placement in an aggregate amount of 3.75% Fixed-to-Floating Rate Subordinated Notes.

Market Stats

On Thursday, CWBK stock moved up 3.87% at $32.20 with 200 shares, compared to its average volume of 1.4K shares. The stock has moved within a range of $32.00 – 32.20 after opening trading at $32.

Completes $17.5 Million Subordinated Note Capital Raise

Notably, the maturity of these Notes will be December 15, 2031. Initially, it will carry an interest rate of around 3.75% per year from December 2, 2021, but not including December 15, 2026, paid semi-annually in the amount overdue. As a result, the Notes will carry interest at a Floating rate annually equivalent to a benchmark rate, anticipated to be a 3-Month Term Secured Overnight Financing Rate, and a 256 basis points spread. Additionally, Notes will be eligible for Tier 2 financing for regulatory reasons.

The company’s CEO Ivo A. Tjan said that they are delighted with the subordinated debt capital raise results and, most importantly, thanked People Sandler and Janney Montgomery Scott teams.Tjan said the raise supports the company’s continued efforts to grow its balance sheet and enhance its business model. Therefore investors should watch CWBK.

Key Quote

“We are pleased with the results of our subordinated debt capital raise and would also like to thank the Janney Montgomery Scott and Piper Sandler teams,” said Ivo A. Tjan, Chairman and CEO. “This raise will support our continued balance sheet growth, further strengthen our business model and allow us to expand our assistance to the local business community.”

Traders Corner

CWBK stock is trading above the 20-Day and 50-Day Moving averages of $31.65 and $1.70 respectively. Key pivot supports are 31.8667, 31.9333, 32.0667 and resistances are 32.2667, 32.3333, 32.4667.