By Andrea Heisinger
New York, Aug. 8 - Susquehanna Bancshares, Inc. sold $150 million of 5.375% 10-year senior notes on Wednesday at par, a market source said.
The notes (Baa3/BBB-/) were priced at a spread of Treasuries plus 372 basis points.
J.P. Morgan Securities LLC was the bookrunner. The lead manager was Jefferies & Co., and the co-manager was Keefe, Bruyette & Woods.
Proceeds, along with available cash, will be used to redeem $125.01 million of 9.375% capital efficient notes maturing in December 2057 from Susquehanna Capital I, which will use the redemption proceeds to redeem the same amount of its 9.375% capital securities, series I; to redeem $50.01 million of 11% junior subordinated deferrable interest debentures, series II, maturing in March 2040 from Susquehanna Capital II, which will use the redemption proceeds to redeem the same amount of its 11% cumulative trust preferred securities, series II; to redeem $12 million of 9% subordinated notes due July 1, 2015 originally issued by Tower Bancorp, Inc. (which Susquehanna acquired on Feb. 17); to redeem $9 million of 9% subordinated notes due July 1, 2014 originally issued by Tower Bancorp; and for general corporate purposes.
The financial holding company for retail and commercial banking and financial services is based in Lititz, Pa.
| Issuer: | Susquehanna Bancshares, Inc.
|
| Issue: | Senior notes
|
| Amount: | $150 million
|
| Maturity: | Aug. 15, 2022
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Lead manager: | Jefferies & Co.
|
| Co-manager: | Keefe, Bruyette & Woods
|
| Coupon: | 5.375%
|
| Price: | Par
|
| Yield: | 5.375%
|
| Spread: | Treasuries plus 372 bps
|
| Trade date: | Aug. 8
|
| Settlement date: | Aug. 13
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
