By Aleesia Forni
Virginia Beach, Nov. 6 – Associated Banc-Corp detailed its recent $500 million sale of notes in two parts, according to an FWP filed with the Securities and Exchange Commission on Thursday.
There was $250 million of 2.75% five-year senior notes (Baa1/BBB/) priced at 99.865 to yield 2.779%, or Treasuries plus 115 basis points.
A second tranche was $250 million of 4.25% subordinated notes (Baa2/BBB-/) due 2025 that priced at 99.647 to yield 4.292%, or Treasuries plus 195 bps.
Goldman Sachs & Co. and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used to finance the redemption of $430 million of the company’s 5.125% senior notes due 2016, to repurchase up to $100 million of the company’s outstanding common stock and for general corporate purposes.
The bank holding company is based in Green Bay, Wis.
| Issuer: | Associated Banc-Corp
|
| Amount: | $500 million
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Macquarie Capital, Sandler O’Neill + Partners LP, Sterne Agee & Leach Inc.
|
| Trade date: | Nov. 5
|
| Settlement date: | Nov. 13
|
| Distribution: | SEC registered
|
|
|
| Senior notes
|
| Amount: | $250 million
|
| Issue: | Senior notes
|
| Maturity: | Nov. 15, 2019
|
| Coupon: | 2.75%
|
| Price: | 99.865
|
| Yield: | 2.779%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Beginning Oct. 15, 2019 at par
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB
|
|
|
| Subordinated notes
|
| Amount: | $250 million
|
| Issue: | Subordinated notes
|
| Maturity: | Jan. 15, 2025
|
| Coupon: | 4.25%
|
| Price: | 99.647
|
| Yield: | 4.292%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Beginning Oct. 15, 2024 or in whole following a regulatory capital treatment event at par
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB-
|
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