By Stephanie N. Rotondo
Seattle, June 23 – Univest Corp. of Pennsylvania announced a $45 million private placement of 5% fixed-to-floating rate subordinated notes due June 30, 2026 in a press release on Thursday.
Interest on the notes is payable at a fixed rate on a semiannual basis through June 30, 2021. At that point, the notes begin to float at Libor plus 390 basis points and are payable quarterly.
The company can redeem the notes on or after June 30, 2021 at par plus accrued interest. The company can also redeem the issue, in whole, upon a tax law or regulatory capital change or upon an Investment Company Act of 1940 event.
All redemption events require approval from the Federal Reserve.
Proceeds will be used for general corporate purposes, including capital investments in Univest Bank and Trust Co. to support organic growth and potential acquisition opportunities.
Univest is the Souderton, Pa.-based parent of Univest Bank and Trust and its insurance, investments and equipment financing subsidiaries.
| Issuer: | Univest Corp. of Pennsylvania
|
| Securities: | Fixed-to-floating rate subordinated notes
|
| Amount: | $45 million
|
| Maturity: | June 30, 2026
|
| Coupon: | Fixed at 5% through June 30, 2021, then floating at Libor plus 390 bps
|
| Call options: | On or after June 30, 2021 or upon a tax law or regulatory capital change or upon an Investment Company Act of 1940 event at par plus accrued interest
|
| Pricing date: | June 23
|
| Settlement date: | July 1
|
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