trending Market Intelligence /marketintelligence/en/news-insights/trending/u6cHnwtmz2Se5IRtJzNptg2 content esgSubNav
In This List

Allegiance Bancshares prices offering of subordinated notes due 2029

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Allegiance Bancshares prices offering of subordinated notes due 2029

Allegiance Bancshares Inc. on Sept. 20 entered into an underwriting agreement with Keefe Bruyette & Woods Inc., as representative of several underwriters, with respect to the sale and purchase of $60 million aggregate principal amount of 4.70% fixed-to-floating rate subordinated notes due Oct. 1, 2029.

Closing of the sale is expected to occur Sept. 27.

Net proceeds to the company from the sale of the notes, after deducting the underwriting discount and estimated offering expenses, are expected to be about $58.4 million. The company intends to use the net proceeds for general corporate purposes.

From and including Sept. 27 to, but excluding Oct. 1, 2024, the notes will bear interest at a fixed rate equal to 4.70% per annum. Interest will be paid semiannually in arrears on April 1 and Oct. 1 of each year, starting April 1, 2020. From and including Oct. 1, 2024, to, but excluding, the maturity date or the date of earlier redemption, the interest rate will reset quarterly to an annual interest rate equal to three-month LIBOR plus a spread of 313 basis points. Interest will be paid quarterly in arrears on Jan. 1, April 1, July 1 and Oct. 1 of each year, beginning Oct. 1, 2024. In the event that three-month LIBOR is less than zero, then three-month LIBOR will be deemed to be zero.

At its option, Allegiance Bancshares may redeem the notes in whole or in part beginning with the interest payment date of Oct. 1, 2024, and on any interest payment date thereafter. The notes will be redeemed at a price equal to 100% of their principal amount, plus any accrued and unpaid interest to, but excluding, the redemption date.

Keefe Bruyette & Woods Inc. is the sole book-running manager for the offering. Raymond James, Sandler O'Neill & Partners LP and Stephens Inc. are the co-managers.