Home BancShares Inc. priced and upsized its previously announced offering for its fixed- to floating-rate subordinated notes due 2027.
The previous offering was for $150 million of the notes, which has been increased to $300 million. The notes bear 5.625% annual interest, payable semiannually in arrears beginning on the issue date, up to but excluding April 15, 2022, and thereafter payable quarterly in arrears at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 357.5 basis points. The notes mature April 15, 2027.
The company expects to close the transaction on or about April 3, 2017.
Proceeds will be used for general corporate purposes, which may include investments at the holding company level, providing capital to support the growth of Centennial Bank, repurchases of common shares and the payment of the cash consideration components of future acquisitions.
RBC Capital Markets LLC, Sandler O'Neill & Partners LP and Stephens Inc. served as joint book-running managers for the offering with Crews & Associates Inc. and U.S. Bancorp Investments Inc. acting as co-managers.