By Marisa Wong
Los Angeles, June 6 – Southwest Bancshares, Inc. announced it issued $35 million of fixed-to-floating rate subordinated notes to some qualified institutional buyers and institutional accredited investors in a private placement transaction, according to a Monday press release.
The notes have a maturity date of June 15, 2032 and carry a fixed coupon 5% for the first five years. After that, the notes will pay interest at SOFR plus 255 basis points, resetting quarterly.
The notes include a right of prepayment without penalty on or after June 15, 2027.
The company intends to use proceeds for general corporate purposes, including the repayment of an existing holding company line of credit in the principal amount of $2.75 million and to support organic growth of its wholly owned subsidiary, Texas Partners Bank.
Piper Sandler & Co. was placement agent on the offering.
The company was advised by Fenimore Kay Harrison LLP, and the placement agent was advised by Bracewell LLP.
Southwest Bancshares is the holding company for Texas Partners Bank based in San Antonio, Tex.
| Issuer: | Southwest Bancshares, Inc.
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| Amount: | $35 million
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| Description: | Fixed-to-floating subordinated notes
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| Maturity: | June 15, 2032
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| Coupon: | Fixed at 5% for the first five years; after that, SOFR plus 255 bps, reset quarterly
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| Call option: | On or after June 15, 2027
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| Placement agent: | Piper Sandler & Co.
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| Announcement date: | June 6
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| Distribution: | Private placement
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