By Taylor Fox
New York, Oct. 7 – Financial Institutions, Inc. completed a private placement of $35 million of 4.375% fixed-to-floating rate subordinated notes due Oct. 15, 2030 to qualified institutional buyers and accredited institutional investors, according to a news release.
The notes will bear interest of 4.375% until Oct. 15, 2025, after which the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month SOFR, plus 426.5 basis points, payable quarterly until maturity.
Financial Institutions may redeem the notes in whole or in part on any interest payment date on or after Oct. 15, 2025.
Financial Institutions plans to use the proceeds from the offering for general corporate purposes, organic growth and to support regulatory capital ratios at Five Star Bank.
The notes were rated BBB- by Kroll Bond Rating Agency.
Piper Sandler & Co. served as sole placement agent for the offering.
Warsaw, NY-based Financial Institutions, Inc. provides diversified financial services through its subsidiaries.
| Issuer: | Financial Institutions, Inc.
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| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $35 million
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| Maturity: | Oct. 15, 2030
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| Agent: | Piper Sandler & Co.
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| Coupon: | 4.375% initially, resets quarterly after Oct. 15, 2022 at SOFR plus 426.5 bps
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| Announcement date: | Oct. 7
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| Distribution: | Private placement
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| Rating: | Kroll: BBB-
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