First Mid plans 10-year fixed-to-floating subordinated notes

By James McCandless

San Antonio, Sept. 28 – First Mid Bancshares, Inc. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030, according to a 424B5 filing with the Securities and Exchange Commission.

Piper Sandler & Co., Janney Montgomery Scott LLC and Stephens Inc. are the bookrunners.

Coupons are payable semiannually until the coupon converts to a floating rate, when they become payable quarterly.

The coupon is fixed for six years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after six years at par. Prior to that, the notes are redeemable after a tax event, regulatory capital event or if the company is required to register as an investment company.

First Mid plans to use the proceeds for general corporate purposes, including additions to working capital and to support organic growth or possible additional future acquisitions of other financial institutions, including the proposed Linco merger.

The company does not plan to list the notes on any securities exchange.

First Mid is a Mattoon, Ill.-based bank holding company.

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