Pinnacle Financial Partners Inc. on Sept. 11 completed its public offering of $300 million of fixed-to-floating rate subordinated notes due Sept. 15, 2029.
From and including the issuance date to, but excluding Sept. 15, 2024, the notes will bear interest at an initial fixed rate of 4.125% per annum. The interest will be paid semiannually in arrears on March 15 and Sept. 15 of each year, starting March 15, 2020.
From Sept. 15, 2024, through the maturity date or earlier redemption date, the notes will bear interest at a floating rate equal to the then-current three-month London interbank offered rate plus 277.5 basis points for each quarterly interest period. The interest will be paid quarterly in arrears on March 15, June 15, Sept. 15 and Dec. 15 of each year, starting Sept. 15, 2024.
The notes, which will initially be treated as Tier 2 capital or the equivalent for bank regulatory purposes, are subordinated unsecured obligations of the company. These are not and will not be guaranteed by any of the company's subsidiaries.
The notes are not subject to repayment at the option of the holders, but may be redeemed by Pinnacle Financial Partners beginning with the interest payment date of Sept. 15, 2024, but not prior to that, except on the occurrence of certain events. These securities will not have the benefit of any sinking fund.
Sandler O'Neill & Partners LP was the lead book-running manager and Piper Jaffray was the co-manager for the offering. Bass Berry & Sims PLC was counsel to Pinnacle Financial Partners in connection with the offering.
