By James McCandless
San Antonio, Aug. 18 – Park National Corp. priced a $175 million offering of $1,000-par fixed-to-floating rate subordinated notes (Kroll: BBB-) due Sept. 1, 2030 with an initial coupon of 4.5% at par on Monday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
Piper Sandler & Co. is the bookrunner.
Coupons will be payable on March 1 and Sept. 1, starting on March 1, 2021 After the coupon converts to a floating rate, coupons will be payable on March 1, June 1, Sept. 1 and Dec. 1 starting on Dec. 1, 2025.
The coupon is fixed until Sept. 1, 2025, then converts to a floating rate of the three-month SOFR plus 439 basis points.
The notes are redeemable on or after Sept. 1, 2025 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.
| Issuer: | Park National Corp.
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| Description: | Fixed-to-floating rate subordinated notes
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| Amount: | $175 million
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| Maturity: | Sept. 1, 2030
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| Bookrunner: | Piper Sandler & Co.
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| Coupon: | 4.5% until Sept. 1, 2025, then converts to a floating rate of the three-month SOFR plus 439 bps
|
| Price: | Par of $1,000
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| Yield: | 4.5%
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| Call: | On or after Sept. 1, 2025 and on each coupon date at par; prior to that, after a tax event, a tier 2 capital event or if the company is required to register as an investment company
|
| Pricing date: | Aug. 17
|
| Settlement date: | Aug. 20
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| Rating: | Kroll: BBB-
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| Distribution: | SEC registered
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