By Lisa Kerner
Charlotte, N.C., Sept. 18 – Atlantic Capital Bancshares, Inc. agreed on Sept. 14 to place $50 million of fixed-to-floating rate subordinated notes due Sept. 30, 2025.
The transaction is expected to close on Sept. 28, according to a form 8-K filed with the Securities and Exchange Commission.
Proceeds are expected to be used to fund about $47 million to $55 million of the cash consideration to be paid to shareholders of First Security Group, Inc. in connection with the merger of First Security with and into Atlantic Capital.
From and including Sept. 28, 2015 to but excluding Sept. 30, 2020, the notes will bear interest at the rate of 6.25% per year and will be payable semiannually in arrears on March 30 and Sept. 30 of each year, beginning on March 30, 2016.
From and including Sept. 30, 2020 to the maturity date or early redemption date, the notes will bear interest at a variable rate per year equal to Libor plus 468 basis points, payable quarterly in arrears on March 30, June 30, Sept. 30 and Dec. 30 of each year.
The notes will rank pari passu with all of Atlantic Capital’s future subordinated debt and will be junior to all of Atlantic Capital’s existing and future senior debt, the filing stated.
From and after Sept. 30, 2020, Atlantic Capital will be able to redeem the notes, in whole or in part, at its option, in accordance with the note terms.
Based in Atlanta, Atlantic Capital Bancshares is the parent company of Atlantic Capital Bank.
| Issuer: | Atlantic Capital Bancshares, Inc.
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| Issue: | Subordinated notes
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| Amount: | $50 million
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| Coupon: | 6.25% to but excluding Sept. 30, 2020; Sept. 30, 2020 through maturity Libor plus 468 bps
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| Maturity: | Sept. 30, 2025
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| Distribution: | Private placement
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 28
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