Chicago, Sept. 15 – Axos Financial, Inc. sold $175 million of $1,000-par fixed-to-floating rate subordinated notes due 2030 (Baa3/KBRA: BBB) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. are the bookrunners.
Coupons are payable semiannually, becoming payable quarterly after the coupon converts to a floating rate.
The 4.875% coupon is fixed for five years, converting to a floating rate of the three-month SOFR plus a 476 basis points spread with a 0% floor. The floating rate will reset quarterly.
The notes are redeemable on any interest payment date at par starting Oct. 1, 2025. 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.
Axos plans to use the proceeds for general corporate purposes, to provide new capital to Axos Bank to support its future growth and for common stock repurchases.
The company does not plan to list the securities on any securities exchange.
Axos is a Las Vegas-based consumer and business banking company.
| Issuer: | Axos Financial, Inc.
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| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $175 million
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| Maturity: | Oct. 1, 2030
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| Bookrunners: | Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc.
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| Coupon: | 4.875% initial rate; resets to a floating rate Oct. 1, 2025 at SOFR plus 476 bps with a 0% floor
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| Price: | Par
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| Call option: | At par plus interest starting Oct. 1, 2025; before that, upon a tax event, tier 2 capital event or if the company is required to register as an investment company
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 18
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| Ratings: | Moody’s: Baa3
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| KBRA: BBB
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