Pinnacle Financial wraps $120 million placement; Medicure settles C$60 million 9½% loan

By Devika Patel

Knoxville, Tenn., Nov. 18 – Nashville-based bank holding company Pinnacle Financial Partners Inc. completed its private placement on Friday, selling $120 million of fixed-to-floating rate subordinated notes due 2026. Also, Winnipeg, Man., biopharmaceutical company Medicure Inc. concluded a C$60 million four-year 9½% term loan with Crown Capital Partners Inc.

The Pinnacle deal priced on Nov. 9. The notes are redeemable after five years. Interest will accrue at 5¼% per year for the first five years. Beginning Nov. 16, 2021, the notes will bear interest at a floating rate equal to Libor plus 388.4 basis points.

Proceeds from the Pinnacle notes will be used to retire all of the outstanding debt under Pinnacle's $75 million revolving credit facility and for general corporate purposes.

Interest on the Medicure loan is compounded and payable monthly. Crown Capital also received warrants for 450,000 common shares in connection with the loan. The warrants are exercisable at C$6.50 per share.

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