By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – Axos Financial, Inc. sold $150 million of $1,000-par fixed-to-floating rate subordinated notes due 2032 (Baa3//KBRA: BBB) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
Keefe, Bruyette & Woods, Inc. is the lead bookrunner, and Piper Sandler Co. is an active bookrunner.
Coupons are payable semiannually, becoming payable quarterly after the coupon converts to a floating rate on March 1, 2027.
The 4% coupon is fixed for five years, converting to a floating rate of the three-month SOFR plus a 227 basis points spread with a 0% floor. The floating rate will reset quarterly.
The notes are redeemable on any interest payment date at par starting March 1, 2027. Prior to that, the notes are redeemable after a tax event, tier 2 capital event or if the company is required to register as an investment company.
Axos plans to use the proceeds for general corporate purposes, to provide new capital to Axos Bank to support its future growth and for common stock repurchases.
The company does not plan to list the securities on any securities exchange.
Axos is a Las Vegas-based consumer and business banking company.
| Issuer: | Axos Financial, Inc.
|
| Amount: | $150 million
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Maturity: | March 1, 2032
|
| Bookrunners: | Keefe, Bruyette & Woods, Inc. (lead) and Piper Sandler Co. (active)
|
| Co-managers: | B. Riley Securities Inc., D.A. Davison & Co. and Wedbush Securities Inc.
|
| Coupon: | 4% initial rate; resets to a floating rate March 1, 2027 at SOFR plus 227 bps with a 0% floor
|
| Price: | Par
|
| Call option: | At par plus interest starting March 1, 2025; before that, upon a tax event, tier 2 capital event or if the company is required to register as an investment company
|
| Pricing date: | Feb. 16
|
| Settlement date: | Feb. 24
|
| Ratings: | Moody’s: Baa3
|
| KBRA: BBB
|
| Cusip: | 05465CAB6
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
