By James McCandless
San Antonio, June 3 – TriState Capital Holdings, Inc. priced a $37.5 million add-on to its $1,000-par fixed-to-floating rate subordinated notes (Kroll: BBB) due May 15, 2030 with an initial coupon of 5.75% on May 29, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The offering supplements the $60 million of notes outstanding.
Stephens Inc., PNC Capital Market LLC and Raymond James & Associates, Inc. are the joint bookrunners.
The coupon is fixed until May 15, 2025, then converts to a floating rate equal to Libor plus 536 basis points.
Coupons are payable May 15 and Nov. 15 of each year during the fixed-rate period. Beginning May 15, 2025, the interest rate will be payable quarterly on Feb. 15, May 15, Aug.15 and Nov. 15.
The notes are redeemable on or after Aug. 15, 2025 at par. Prior to that, the notes are redeemable after a change in law prevents the company from deducting interest from the notes, a tier 2 capital event, or if the company is required to register as an investment company.
TriState plans to use the proceeds for general corporate purposes, which may include working capital, repurchasing shares of its common stock, providing capital to support the organic growth of the bank or funding the opportunistic acquisition of similar or complementary financial service organizations or to repay outstanding debt.
The company does not plan to list the notes on any securities exchange.
TriState is a Pittsburgh-based bank holding company.
| Issuer: | TriState Capital Holdings, Inc.
|
| Description: | Fixed-to-floating rate subordinated notes
|
| Amount: | $37.5 million
|
| Maturity: | May 15, 2030
|
| Bookrunners: | Stephens Inc., PNC Capital Market LLC and Raymond James & Associates, Inc.
|
| Coupon: | 5.75% until May 15, 2025, then converts to a floating rate of Libor plus 536 bps
|
| Price: | Par of $1,000
|
| Call: | On or after Aug. 15, 2025 at par; prior to that, after a change in law prevents the company from deducting interest from the notes, a tier 2 capital event, or if the company is required to register as an investment company
|
| Pricing date: | May 29
|
| Settlement date: | June 3
|
| Rating: | Kroll: BBB
|
| Distribution: | SEC registered
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