South Plains Financial, Inc. Completed Private Placement of $50.0 Million of 4.50% Fixed-to-Floating Rate Subordinated Notes
29 Settembre 2020 - 11:10PM
South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the
“Company”), the parent company of City Bank, announced today the
completion of its private placement of $50.0 million in
fixed-to-floating rate subordinated notes due 2030 (the “Notes”).
The Notes bear interest at a fixed rate of 4.50% for the first five
years, and the interest rate will reset quarterly thereafter to the
then current three-month Secured Overnight Financing Rate, as
published by the Federal Reserve Bank of New York, plus 438 basis
points. The Company is entitled to redeem the Notes, in whole or in
part, on any interest payment date on or after September 30, 2025,
or at any time, in whole but not in part, upon certain other
specified events.
The Notes are intended to qualify as Tier 2
capital for South Plains for regulatory capital purposes. The
Company intends to use the net proceeds from the offering for
general corporate purposes.
In connection with the issuance and sale of the
Notes, the Company entered into a registration rights agreement
with each of the purchasers of the Notes pursuant to which the
Company has agreed to take certain actions to provide for the
exchange of the Notes for subordinated notes that are registered
under the Securities Act of 1933, as amended (the “Securities
Act”), with substantially the same terms as the Notes.
Piper Sandler & Co. served as placement
agent for the offering. Hunton Andrews Kurth LLP served as legal
counsel to the Company and Fenimore, Kay, Harrison & Ford, LLP,
served as legal counsel to the placement agent.
This press release is for informational purposes
only and shall not constitute an offer to sell, a solicitation of
an offer to sell, or the solicitation of an offer to buy the Notes,
nor shall there be any sale in any jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction. The Notes have not been registered under the
Securities Act and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements. The indebtedness evidenced by the Notes is not a
deposit and is not insured by the Federal Deposit Insurance
Corporation or any other government agency or fund.
About South Plains Financial,
Inc.
South Plains is the bank holding company for
City Bank, a Texas state-chartered bank headquartered in Lubbock,
Texas. City Bank is one of the largest independent banks in West
Texas and has additional banking operations in the Dallas, El Paso,
Greater Houston, the Permian Basin, and College Station Texas
markets, and the Ruidoso and Eastern New Mexico markets. South
Plains provides a wide range of commercial and consumer financial
services to small and medium-sized businesses and individuals in
its market areas. Its principal business activities include
commercial and retail banking, along with insurance, investment,
trust and mortgage services. Please visit https://www.spfi.bank for
more information.
Forward Looking Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Any statements about South Plains’
expectations, beliefs, plans, predictions, forecasts, objectives,
assumptions or future events or performance are not historical
facts and may be forward-looking. These statements are often, but
not always, made through the use of words or phrases such as
“anticipate,” “believes,” “can,” “could,” “may,” “predicts,”
“potential,” “should,” “will,” “estimate,” “plans,” “projects,”
“continuing,” “ongoing,” “expects,” “intends” and similar words or
phrases. South Plains cautions that the forward-looking statements
in this press release are based largely on South Plains’
expectations and are subject to a number of known and unknown risks
and uncertainties that are subject to change based on factors which
are, in many instances, beyond South Plains’ control. Factors that
could cause such changes include, but are not limited to, general
economic conditions, the extent of the impact of the COVID-19
pandemic on our customers, changes in interest rates, regulatory
considerations, competition and market expansion opportunities,
changes in non-interest expenditures or in the anticipated benefits
of such expenditures, and changes in applicable laws and
regulations. Additional information regarding these risks and
uncertainties to which South Plains’ business and future financial
performance are subject is contained in South Plains’ most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q on
file with the Securities and Exchange Commission (the “SEC”), and
other documents South Plains files with the SEC from time to time.
South Plains urges readers of this press release to review the
“Risk Factors” section of our most recent Annual Report on Form
10-K and Quarterly Report on Form 10-Q, as well as the “Risk
Factors” section of other documents South Plains files with the SEC
from time to time. Due to these and other possible uncertainties
and risks, readers are cautioned not to place undue reliance on the
forward-looking statements contained in this press release. Any
forward-looking statements presented herein are made only as of the
date of this press release, and South Plains does not undertake any
obligation to update or revise any forward-looking statements to
reflect changes in assumptions, new information, the occurrence of
unanticipated events, or otherwise, except as required by law.
Contact: |
Mikella Newsom, Chief Risk
Officer and Secretary |
|
(866) 771-3347 |
|
investors@city.bank |
Source: South Plains Financial, Inc.
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