Park National to sell fixed-to-floating 10-year subordinated notes

By James McCandless

San Antonio, Aug. 17 – Park National Corp. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030, according to a 424B5 filing with the Securities and Exchange Commission.

Piper Sandler & Co. is the bookrunner.

Coupons will be payable semiannually until 2025, becoming payable quarterly when the coupon converts to a floating rate.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years and on each coupon payment date at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the company is required to register as an investment company.

Park National plans to use the proceeds for general corporate purposes, which may include providing capital to support its growth organically or through strategic acquisitions, repaying debt, financing investments, capital expenditures, repurchasing its common shares and for investments in Park National Bank as regulatory capital.

The company does not plan to list the notes on any securities exchange.

Park National is a Newark, Ohio-based bank holding company.

© 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.