Fulton Financial begins capped tender offer for 4.5%, 3.6% notes

By Taylor Fox

New York, March 16 – Fulton Financial Corp. began a cash tender offer to purchase up to a maximum amount of its $250 million outstanding 4.5% subordinated notes due 2024 (Cusip: 360271AJ9) and its $125 million outstanding 3.6% senior notes due 2022 (Cusip: 360271AK6), according to a news release.

Fulton plans to accept up to $75 million of the 2024 notes at a purchase price based on the 0.25% U.S. Treasury due March 15, 2024 plus 65 basis points and up to $60 million of the 2022 notes for a total consideration of $1,031.25.

For each note series, the company will pay an early tender premium of $30 per $1,000 of notes tendered by the 5 p.m. ET March 29 early tender date.

The 2024 note purchase price will be determined at 10 a.m. ET March 29.

The early settlement date is expected for March 30.

The offer will expire at 11:59 p.m. ET April 13.

The final settlement date is expected to be April 15.

The offer will be funded using cash on hand.

The purpose of the offer is to reduce the company’s aggregate interest expense.

Piper Sandler & Co. (866 805-4128, 212 466-7807) is the dealer manager, and Global Bondholder Services Corp. (212 430-3774, 866 924-2200) is the tender and information agent.

Fulton Financial is a Lancaster, Pa.-based multi-bank financial holding company.

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