By Stephanie N. Rotondo
Phoenix, April 10 – Financial Institutions Inc. priced $40 million of 6% $1,000-par fixed-to-floating rate subordinated notes due April 15, 2030, according to an FWP filed with the Securities and Exchange Commission on Friday.
The deal was upsized from $35 million.
Sterne Agee & Leach Inc. is the bookrunner.
The interest rate will be fixed until April 15, 2025, at which time it will begin floating at Libor plus 394.4 basis points. While fixed, interest will be payable semiannually and then quarterly once floating.
The company can redeem the notes beginning on April 15, 2025 at par plus accrued interest. The company can also redeem the debt upon a tax event, regulatory capital change or if the company has to register as an investment company.
The notes will not be listed on any exchange.
Proceeds will be used for general corporate purposes, including contributing capital to the bank, supporting organic growth, possible acquisitions and the payments of dividends.
Financial Institutions is a Warsaw, N.Y.-based holding company for Five Star Bank.
| Issuer: | Financial Institutions Inc.
|
| Securities: | Fixed-to-floating rate subordinated notes
|
| Amount: | $40 million, increased from $35 million
|
| Maturity: | April 15, 2030
|
| Bookrunner: | Sterne Agee & Leach Inc.
|
| Co-manager: | Sandler O’Neill + Partners LP
|
| Coupon: | Fixed at 6% until April 15, 2025, then floating at Libor plus 394.4 bps
|
| Price: | Par of $1,000
|
| Yield: | 6%
|
| Call options: | On or after April 15, 2025 or upon a tax event, regulatory capital treatment change or if the company has to register as an investment company at par plus accrued interest
|
| Pricing date: | April 9
|
| Settlement date: | April 14
|
| Cusip: | 317585AA5
|
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