By James McCandless
San Antonio, Sept. 30 – Veritex Holdings, Inc. priced a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes due Oct. 15, 2030 (Kroll: BBB-) with an initial coupon of 4.125% at par on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
Keefe, Bruyette & Woods, Inc. is the bookrunner.
Coupons are payable on April 15, and Oct. 15 starting on April 15, 2021, switching to Jan. 15, April 15, July 15 and Oct. 15 on Jan. 15, 2026 after the coupon converts to a floating rate.
The coupon is fixed until Oct. 15, 2025, then converts to a floating rate of the three-month SOFR plus 399.5 basis points.
The notes are redeemable on or after Oct. 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.
Veritex plans to use the proceeds for general corporate purposes, including for the potential payment of outstanding debt, and supporting capital levels at Veritex Community Bank.
The company does not plan to list the notes on any securities exchange.
Veritex is a Dallas-based bank holding company.
| Issuer: | Veritex Holdings, Inc.
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| Description: | Fixed-to-floating rate subordinated notes
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| Amount: | $125 million
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| Maturity: | Oct. 15, 2030
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| Bookrunner: | Keefe, Bruyette & Woods, Inc.
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| Co-managers: | Stephens Inc. and Raymond James & Associates, Inc.
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| Coupon: | 4.125% until Oct. 15, 2025, then converts to a floating rate of the three-month SOFR plus 399.5 bps
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| Price: | Par of $1,000
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| Yield: | 4.125%
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| Call: | On or after Oct. 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
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| Pricing date: | Sept. 30
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| Settlement date: | Oct. 5
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| Rating: | Kroll: BBB-
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| Distribution: | SEC registered
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