By James McCandless
San Antonio, Oct. 1 – First Mid Bancshares, Inc. priced a $96 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes (Kroll: BBB) with an initial coupon of 3.95% at par on Thursday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
Piper Sandler & Co., Janney Montgomery Scott LLC and Stephens Inc. are the bookrunners.
Coupons are payable on April 15 and Oct. 15 starting on April 15, 2021, then switches to Jan. 15, April 15, July 15 and Oct. 15 starting on Jan. 15, 2026.
The coupon is fixed until Oct. 15, 2025, then converts to a floating rate of the three-month SOFR plus 383 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, 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.
Issuer: | First Mid Bancshares, Inc.
|
Description: | Fixed-to-floating rate subordinated notes
|
Amount: | $96 million
|
Maturity: | Oct. 15, 2030
|
Bookrunners: | Piper Sandler & Co., Janney Montgomery Scott LLC and Stephens Inc.
|
Dividend: | 3.95% until Oct. 15, 2025, then converts to a floating rate of the three-month SOFR plus 383 bps
|
Price: | Par of $1,000
|
Yield: | 3.95%
|
Call: | On or after Oct. 15, 2025 at par; prior to that, after a tax event, regulatory capital event or if the company is required to register as an investment company
|
Pricing date: | Oct. 1
|
Settlement date: | Oct. 6
|
Rating: | Kroll: BBB
|
Distribution: | SEC registered
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.