By Wendy Van Sickle
Columbus, Ohio, Nov. 7 – Univest Financial Corp. priced a $50 million offering of $1,000-par fixed-to-floating rate subordinated notes due Nov. 15, 2032 (Kroll: BBB) with an initial coupon of 7.25%, according to an FWP filing with the Securities and Exchange Commission.
U.S. Bancorp Investments, Inc. is the bookrunner.
Coupons will be payable semiannually until Nov., 15, 2027, then the coupon will be payable on each Feb. 15, May 15, Aug. 15 and Nov. 15.
The coupon is fixed until Nov. 15, 2027, then converts to a floating rate of three-month SOFR plus 309.8 basis points.
The notes are redeemable on or after Nov. 15, 2027 at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par.
Proceeds will be used for general corporate purposes, which may include refinancing activities.
Univest is a Souderton, Pa.-based bank holding company.
| Issuer: | Univest Financial Corp.
|
| Amount: | $50 million
|
| Issue: | Fixed-to-floating rate subordinated notes
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| Maturity: | Nov. 15, 2032
|
| Bookrunner: | U.S. Bancorp Investments, Inc.
|
| Co-managers: | Keefe, Bruyette & Woods and PNC Capital Markets LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Luse Gorman, PC
|
| Counsel to underwriters: | Barack Ferrazzano Kirschbaum & Nagelberg LLP
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| Coupon: | 7.25% until Nov. 15, 2027, then converts to a floating rate of three-month SOFR plus 309.8 bps
|
| Price: | Par of $1,000
|
| Yield: | 7.25%
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| Call: | On or after Nov. 15, 2027 at par; prior to that, after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Rating: | Kroll: BBB
|
| Distribution: | SEC registered
|
| Cusip: | 915271AD2
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