Midland States Bancorp Inc. issued and sold about $72.8 million of 5.00% fixed-to-floating rate subordinated notes due Sept. 30, 2029, and approximately $27.3 million of 5.50% fixed-to-floating rate subordinated notes due Sept. 30, 2034.
The notes were sold in a private placement transaction and issued pursuant to an indenture between the Effingham, Ill.-based company and UMB Bank NA, as trustee.
Midland States Bancorp used a portion of the net proceeds from the offering to repay a $30.0 million senior term loan. The remaining net proceeds will be used to redeem $40.3 million of existing subordinated debt on or after June 18, 2020, which is the date that the existing subordinated debt becomes redeemable, and for general corporate purposes.
The 2029 notes have an initial fixed rate of 5.00% per annum from and including the issuance date to, but excluding, Sept. 30, 2024. From and including Sept. 30, 2024, to, but excluding, the maturity date, the notes bear interest at a floating rate, reset quarterly. The company is entitled to redeem the 2029 notes, in whole or in part, on any interest payment date on or after Sept. 30, 2024, and to redeem the notes in whole upon certain other events.
The 2034 notes have an initial fixed rate of 5.50% per annum from and including the issuance date to, but excluding, Sept. 30, 2029. From and including Sept. 30, 2029, to, but excluding, the maturity date, the notes bear interest at a floating rate, reset quarterly. The company is entitled to redeem the 2034 notes, in whole or in part, on any interest payment date on or after Sept. 30, 2029, and to redeem the notes in whole upon certain other events.
Sandler O'Neill & Partners LP acted as the sole placement agent for the notes.
