Allegiance Bancshares Inc. on Sept. 27 completed its public offering of $60 million aggregate principal amount of 4.70% fixed to floating-rate subordinated notes due Oct. 1, 2029.
The notes were issued pursuant to a subordinated debt indenture between the company and U.S. Bank NA, as trustee.
From and including Sept. 27 to, but excluding, Oct. 1, 2024, the notes will bear interest at an initial fixed rate of 4.70% per annum, payable semiannually in arrears on April 1 and Oct. 1 of each year, beginning April 1, 2020. Thereafter, from Oct. 1, 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 313 basis points, for each quarterly interest period, payable quarterly in arrears on Jan. 1, April 1, July 1 and Oct. 1 of each year.
The notes, which will initially be treated as Tier 2 capital or the equivalent for bank regulatory purposes, are subordinated unsecured obligations of Allegiance Bancshares. These are not and will not be guaranteed by any of the company's subsidiaries.
The notes will not have the benefit of any sinking fund. These are not subject to repayment at the option of the holders, but may be redeemed by the company beginning with the interest payment date of Oct. 1, 2024, but not prior thereto, except upon the occurrence of certain events.
