Axos Financial prices subordinated notes offering due 2032

Axos Financial Inc., the parent company of Axos Bank, priced its public offering of $150 million fixed-to-floating rate subordinated notes due 2032.

The notes will carry a 4% annual interest rate, payable semiannually in arrears on March 1 and Sept. 1 of each year, beginning on Sept. 1.

From and including March 1, 2027, through but excluding March 1, 2032, or the earlier redemption date, interest will accrue at a floating rate per annum equal to the then-current three-month term secured overnight financing rate plus a spread of 227 basis points, payable quarterly in arrears.

The proceeds from the sale of the subordinated notes will be used for general corporate purposes.

The subordinated notes are callable on any interest payment date at par starting on March 1, 2027.

Keefe Bruyette & Woods and Piper Sandler & Co. are serving as lead and joint bookrunning manager, respectively, with B. Riley Securities Inc., D.A. Davidson & Co. and Wedbush Securities Inc. serving as co-managers on the offering.