Questar eyes $250 million three-part notes sale; Midland States sells $40 million

By Devika Patel

Knoxville, Tenn., Oct. 17 – Two companies reported new private placements on Tuesday, with Salt Lake City-based natural gas distributor Questar Gas Co. reporting that it has arranged a $250 million placement of notes in three tranches and Effingham, Ill.-based financial holding company Midland States Bancorp, Inc. settling $40 million 6.25% 10-year fixed-to-floating rate subordinated notes to fund a planned merger with Alpine Bancorporation, LLC.

Questar plans $250 million

Questar intends to offer $250 million of senior notes in three parts through a placement that priced on Oct. 11.

The notes include $100 million of 3.38% senior notes due April 1, 2030, $50 million of 3.3% senior notes due Nov. 15, 2032 and $100 million of 3.97% senior notes due Nov. 15, 2047.

The notes will settle in two tranches, with part of the placement settling on Nov. 15 and the remainder of the sale settling on April 2, 2018.

Midland States taps market

Midland States Bancorp reported that it completed a $40 million private placement of fixed-to-floating rate subordinated notes due Oct. 15, 2027 on Oct. 13.

Interest accrues at 6.25% per year to but excluding Oct. 15, 2022. From then onwards, the notes will bear interest at a floating rate equal to Libor plus 422.9 basis points.

The notes are redeemable on or after Oct. 15, 2022.

Proceeds will be used to fund a company subsidiary’s planned merger with Alpine Bancorporation, LLC and for other general corporate purposes.

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