By Stephanie N. Rotondo
Seattle, Oct. 27 – Enterprise Financial Services Corp. priced $50 million of 4.75% fixed-to-floating rate subordinated notes due Nov. 1, 2026 (expected ratings: BBB-Kroll) at par on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Sandler O’Neill + Partners LP was the bookrunning manager.
Interest will be payable on a semiannual basis at the fixed rate until Nov. 1, 2021. After that, the rate will float at Libor plus 338.7 basis points and will be paid on the first of February, May, August and November.
The notes become redeemable on or after Nov. 1, 2021 at par plus accrued interest. The notes can be redeemed prior to that date upon a tax or regulatory capital event, or if the company is required to register as an investment company under the Investment Company Act of 1940.
Proceeds will be used for general corporate purposes, which may include refinancing, reduction or repayment of debt, investments in Enterprise Bank & Trust as regulatory capital, possible acquisitions – including funding the cash portion of the company’s merger with Jefferson County Bancshares Inc. – stock repurchases, business growth and investments at the holding company level.
Enterprise Financial is based in St. Louis and operates commercial banking and wealth management businesses.
| Issuer: | Enterprise Financial Services Corp.
|
| Securities: | Fixed-to-floating rate subordinated notes
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| Amount: | $50 million
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| Maturity: | Nov. 1, 2026
|
| Bookrunner: | Sandler O’Neill +Partners LP
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| Coupon: | Fixed at 4.75% until Nov. 1, 2021, then floating at Libor plus 338.7 bps
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| Price: | Par of $1,000
|
| Call options: | On or after Nov. 1, 2021, or prior to that date upon a tax or regulatory capital treatment event, or if the company has to register as an investment company under the Investment Company Act of 1940. In either case, at par plus accrued interest
|
| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Expected rating: | Kroll: BBB
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| Cusip: | 293712AA3
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