By Cristal Cody
Tupelo, Miss., May 22 – Bank of N.T. Butterfield & Son Ltd. offered further details about a $75 million sale of 10-year fixed-to-floating rate subordinated notes (A3/BBB/BBB-) that priced at a spread of Treasuries plus 219.2 bps with a 5.25% initial coupon on Monday, according to an FWP filed with the Securities and Exchange Commission.
Interest will accrue at a fixed rate until June 1, 2023 and then at a rate equal to Libor plus 225.5 bps.
Sandler O’Neill + Partners, LP and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay the company’s 5.15% series B subordinated notes due May 27, 2018 and for other general corporate purposes, which may include unsecured subordinated debt repayment.
The bank is based in Hamilton, Bermuda.
| Issuer: | Bank of N.T. Butterfield & Son Ltd.
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| Amount: | $75 million
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| Description: | Fixed-to-floating rate subordinated notes
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| Maturity: | June 1, 2028
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| Bookrunners: | Sandler O’Neill + Partners, LP and Wells Fargo Securities LLC
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| Coupon: | 5.25% until June 1, 2023, then at 225.5 bps over Libor
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| Price: | Par
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| Spread: | Treasuries plus 219.2 bps
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| Call features: | At par on any interest payment date beginning on June 1, 2023
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| Trade date: | May 21
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| Settlement date: | May 24
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| Ratings: | Moody’s: A3
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| S&P: BBB
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| Fitch: BBB-
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| Distribution: | SEC registered
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