By James McCandless
San Antonio, May 29 – Valley National Bancorp priced a $115 million offering of $1,000-par fixed-to-floating rate subordinated notes (BBB-//Kroll: BBB/DBRS: BBBH) due June 15, 2030 with an initial coupon of 5.25%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC and Piper Sandler & Co. are the bookrunners.
Coupons are payable on June 15 and Dec. 15, starting on Dec. 15, 2020. After five years, coupons are payable on March 15, June 15, Sept. 15 and Dec. 15 starting on Sept. 15, 2025
The coupon is fixed until June 15, 2025, then converts to a floating rate of the three-month SOFR plus 514 basis points.
The notes are redeemable on or after June 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, tier 2 capital event, or if the company is required to register as an investment company at par.
Valley National plans to use the proceeds for general corporate purposes and investments in the bank as regulatory capital.
The company does not plan to list the preferreds on any securities exchange.
Valley National is a New York-based bank holding company.
| Issuer: | Valley National Bancorp
|
| Description: | Fixed-to-floating rate subordinated notes
|
| Amount: | $115 million
|
| Maturity: | June 15, 2030
|
| Bookrunners: | Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC and Piper Sandler & Co.
|
| Coupon: | 5.25% until June 15, 2025, then converts to a floating rate of the three-month SOFR plus 514 bps
|
| Price: | Par of $1,000
|
| Call: | On or after June 15, 2025 at par; prior to that, after a tax event, tier 2 capital event, or if the company is required to register as an investment company at par
|
| Pricing date: | May 29
|
| Settlement date: | June 5
|
| Ratings: | S&P: BBB-
|
| Kroll: BBB
|
| DBRS: BBBH
|
| Distribution: | SEC registered
|
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