By Andrea Heisinger
New York, Jan. 28 - FirstMerit Corp. sold $250 million of 4.35% 10-year subordinated notes (A3/BBB/) in Monday's market to yield Treasuries plus 237.5 basis points, according to an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.968 to yield 4.354%.
Active bookrunners were Bank of America Merrill Lynch and RBC Capital Markets LLC. Passive bookrunners were Barclays and Credit Suisse Securities (USA) LLC.
Proceeds will be used to purchase from the U.S. Department of the Treasury, in connection with the acquisition of Citizens Republic Bancorp Inc., that company's outstanding series A cumulative preferred stock which was issued under the Troubled Asset Relief Program. The shares will be repurchased at the liquidation preference plus accrued or unpaid interest.
The notes are non-callable unless the Citizens acquisition is not done on or before June 12, or at the discretion of the board of directors, no later than Sept. 12, in which case there is a mandatory call on the subordinated notes.
FirstMerit is a financial services company is based in Akron, Ohio.
| Issuer: | FirstMerit Corp.
|
| Issue: | Subordinated notes
|
| Amount: | $250 million
|
| Maturity: | Feb. 4, 2023
|
| Bookrunners: | Bank of America Merrill Lynch, RBC Capital Markets LLC (active), Barclays, Credit Suisse Securities (USA) LLC (passive)
|
| Coupon: | 4.35%
|
| Price: | 99.968
|
| Yield: | 4.354%
|
| Spread: | Treasuries plus 237.5 bps
|
| Call: | Non-callable
|
| Mandatory call: | If acquisition of Citizens not done before June 12, or no later than Sept. 12
|
| Trade date: | Jan. 28
|
| Settlement date: | Feb. 4
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
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