By Andrea Heisinger
New York, Aug. 17 - City National Bank priced $130 million subordinated notes in two tranches, according to an 8-K filing with the Securities and Exchange Commission.
A $55 million tranche of 10-year floating-rate notes have a fixed interest rate of 9% for five years after the issuance date. It then switches to a floating rate of three-month Libor plus 600 basis points with an interest-rate cap of 10%.
The floaters are non-callable for five years and then may be redeemed at par plus interest.
The $75 million of 10-year fixed-rate notes have a coupon of 9%. They are non-callable.
The notes in both tranches were sold via Section 3(a)(2). They qualify as tier 2 capital.
The financial services unit of bank holding company City National Corp. is based in Los Angeles.
| Issuer: | City National Bank
|
| Issue: | Subordinated notes
|
| Total amount: | $130 million
|
| Distribution: | Section 3(a)(2)
|
| Settlement date: | Aug. 12
|
|
|
| 10-year floaters
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| Amount: | $55 million
|
| Maturity: | Aug. 12, 2019
|
| Coupon: | 9% for five years, then three-month Libor plus 600 bps, with a rate cap of 10%
|
| Call: | Non-callable until 2014, then at par
|
|
|
| 10-year fixed-rate notes
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| Amount: | $75 million
|
| Maturity: | Aug. 12, 2019
|
| Coupon: | 9%
|
| Call: | Non-callable
|
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