By Stephanie N. Rotondo
Seattle, Sept. 28 – First Internet Bancorp sold $25 million of 6% $25-par fixed-to-floating rate subordinated notes due Sept. 30, 2026 (Kroll: BBB-) on Tuesday, the company said in an FWP filed with the Securities and Exchange Commission.
There is a $3.75 million over-allotment option.
Sandler O’Neill + Partners LP is the bookrunner.
Interest is payable on the 30th day of March, June, September and December. Beginning Sept. 30, 2021, the interest rate begins to float at Libor plus 485 basis points.
The notes become redeemable Sept. 30, 2021 at par plus accrued interest. The company can call the issue prior to that date upon a tax or regulatory capital event, or if the company is required to register as an investment company under the Investment Company Act of 1940.
In either case, the call price is par plus accrued interest.
Proceeds will be used to support organic growth, for the pursuit of strategic acquisition opportunities and for other general corporate purposes, including contributing capital to the bank, reducing or redeeming existing debt, funding loans and purchasing investment securities through the bank.
First Internet is the Fishers, Ind.-based parent of First Internet Bank.
| Issuer: | First Internet Bancorp
|
| Securities: | Fixed-to-floating rate subordinated notes
|
| Amount: | $25 million
|
| Greenshoe: | $3.75 million
|
| Maturity: | Sept. 30, 2026
|
| Bookrunner: | Sandler O’Neill + Partners LP
|
| Co-managers: | American Capital Partners LLC, Boenning & Scattergood Inc., R. Seelaus & Co. Inc.
|
| Coupon: | Fixed at 6% until Sept. 30, 2021, then floating at Libor plus 485 bps
|
| Price: | Par of $1,000
|
| Call options: | On or after Sept. 30, 2021 at par plus accrued interest; also redeemable upon a tax or regulatory event, or if the company has to register as an investment company under the Investment Company Act of 1940
|
| Pricing date: | Sept. 27
|
| Settlement date: | Sept. 30
|
| Rating: | Kroll: BBB-
|
| Expected listing: | Nasdaq
|
© 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.
