GrandSouth Bancorporation (OTCPK:GRRB) announced a private placement of fixed-to-floating rate subordinated notes due November 2030 for gross proceeds of $18,000,000 on November 13, 2020. The unsecured notes initially bear interest at a fixed rate of 4.375% per annum, payable semi-annually in arrears on each May 15 and November 15 commencing May 15, 2021 until November 15, 2025. From November 15, 2025 through November 15, 2030 or up to an earlier redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to three-month term secured overnight financing rate plus 416 basis points, payable quarterly in arrears. The notes are redeemable, in whole or in part, on November 15, 2025, on any interest payment date thereafter, and at any time upon the occurrence of certain events. The company has raised the transaction pursuant to Regulation D from 24 investors.