By Aleesia Forni
Virginia Beach, July 31 – United Community Banks Inc. priced $85 billion of senior fixed-to-floating-rate notes (Kroll: BBB) in tranches due 2022 and 2027 on Friday, according to two separate FWP filings with the Securities and Exchange Commission.
The sale includes $50 million of notes due Feb. 14, 2022 priced at par that carry a coupon of 5% from Aug. 14, 2015 to Aug. 14, 2020, then at a rate equal to Libor plus 381.4 basis points.
There is also $35 million of notes due Feb. 14, 2027 priced at par that, from Aug. 14, 2015 to Aug. 14, 2025, carry a coupon at 5.5%. After that date, the coupon will be at a rate equal to Libor plus 371 bps.
U.S. Bancorp Investments Inc. is the bookrunner.
Proceeds will be used to fund the company’s acquisition of Palmetto Bancshares, Inc. and its subsidiary the Palmetto Bank, and for general corporate purposes, which may include the potential repayment or redemption of trust preferred securities and other debt and acquisitions.
The bank holding company is based in Blairsville, Ga.
| Issuer: | United Community Banks Inc.
|
| Issue: | Fixed-to-floating rate senior notes
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| Amount: | $85 million
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| Bookrunner: | U.S. Bancorp Investment Inc.
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| Co-managers: | FIG Partners LLC, SunTrust Robinson Humphrey Inc.
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| Trade date: | July 31
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| Settlement date: | Aug. 14
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| Rating: | Kroll: BBB
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| Distribution: | SEC registered
|
|
|
| Notes due 2022
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| Amount: | $50 million
|
| Maturity: | Feb. 14, 2022
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| Coupon: | From Aug. 14, 2015 to Aug. 14, 2020 at 5%, then at a rate equal to Libor plus 381.4 bps
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| Price: | Par
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| Call features: | Callable on or after Aug. 14, 2020
|
|
|
| Notes due 2027
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| Amount: | $35 million
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| Maturity: | Feb. 14, 2027
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| Coupon: | From Aug. 14, 2015 to Aug. 14, 2025 at 5.5%, then at a rate equal to Libor plus 371 bps
|
| Price: | Par
|
| Call features: | Callable on or after Aug. 14, 2025
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