By Rebecca Melvin
Concord, N.H., April 28 – PacWest Bancorp’s Pacific Western Bank priced $400 million of its 3¼% fixed-to-floating rate subordinated notes due 2031 at par, according to a company news release.
The notes will pay the initial fixed rate until May 1, 2026, when the coupon will convert to a floating rate equal SOFR plus 252 basis points.
The notes are intended to quality as tier 2 capital for regulatory purposes. The offering is expected to closed on April 30.
The notes are non-callable until May 1, 2026. After that, the bank may redeem the notes in whole or in part on every interest payment date at par plus accrued and unpaid interest.
Piper Sandler & Co. acted as bookrunner for the notes, the proceeds of which will be used for general corporate purposes, including to provide capital to support growth and the capital adequacy of the bank.
The bank holding company is based in Los Angeles.
| Issuer: | Pacific Western Bank
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| Parent: | PacWest Bancorp
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| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $400 million
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| Maturity: | 2031
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| Bookrunner: | Piper Sandler & Co.
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| Coupon: | 3¼% for five years, then floating rate of SOFR plus 252 bps
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| Price: | Par
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| Calls: | Non-callable until May 1, 2026, then callable at par plus interest on payment dates
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| Announcement date: | April 28
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| Closing date: | April 30
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| Distribution: | Regulation S
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