Horizon Bancorp, Inc. announced the completion of a private placement of $100,000,000 in aggregate principal amount of 7.00% Fixed-to-Floating Rate Subordinated Notes due 2035.
The company intends to use the net proceeds for general corporate purposes and to redeem approximately $56.5 million in aggregate principal amount of previous notes.
The Notes will initially bear interest at a fixed rate of 7.00% per annum until September 15, 2030, when the interest rate will reset quarterly to a floating rate.
Use of Proceeds
The net proceeds will go towards general corporate purposes and redeeming existing notes.
Interest Rate Structure
The Notes will transition from a fixed rate to a floating rate after September 15, 2030.
Tier 2 Capital Qualification
The Notes have been structured to qualify as Tier 2 capital for regulatory purposes.
- The completion of the notes offering will provide Horizon Bancorp, Inc. with additional capital for potential balance sheet repositioning.
- The transition from fixed to floating interest rates can impact the company's future interest expenses and profitability.
Horizon Bancorp, Inc.'s successful completion of the subordinated notes offering marks a strategic move towards strengthening its capital position and optimizing its balance sheet structure for future growth opportunities.