By Devika Patel
Knoxville, Tenn., Oct. 1 – SmartFinancial, Inc. said it sold $40 million of fixed-to-floating-rate subordinated notes (Kroll: BBB-) due Oct. 2, 2028 in a private placement. Keefe, Bruyette & Woods, Inc. was the agent.
The notes are non-callable until Oct. 2, 2023, and bear interest at a fixed rate of 5.625% per year to, but excluding, Oct. 2, 2023. The notes were sold at par.
From and including Oct. 2, 2023 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to Libor plus 255 bps.
Proceeds will be used to repay the outstanding borrowings under the company’s revolving line of credit, to pay the cash consideration in connection with the SmartFinancial’s planned acquisition of Foothills Bancorp, Inc. and for other general corporate purposes.
The bank holding company for SmartBank is based in Knoxville.
| Issuer: | SmartFinancial, Inc.
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| Issue: | Fixed-to-floating subordinated notes
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| Amount: | $40 million
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| Maturity: | Oct. 2, 2028
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| Coupon: | 5.625% up to Oct. 2, 2023; then Libor plus 255 bps
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| Price: | Par
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| Call: | On or after Oct. 2, 2023
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| Placement agent: | Keefe, Bruyette & Woods, Inc.
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| Settlement date: | Oct. 1
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| Rating: | Kroll: BBB-
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| Distribution: | Private placement
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