A story in the May 22 edition of the Prospect News Investment-Grade Daily and the Prospect News Preferred Stock Daily included an incorrect rating for Western Alliance Bank’s new $225 million 5.25% 10-year fixed-to-floating rate subordinated notes (Baa2/BB+). The notes are split rated. A corrected version of the story follows:
Tupelo, Miss., May 26 – Western Alliance Bank priced an upsized $225 million of 5.25% split-rated 10-year fixed-to-floating rate subordinated notes (Baa2/BB+) on Wednesday at a spread of 456 basis points over Treasuries, according to a market source and a news release.
The Tier 2 capital notes were initially talked to price at the 5.25% area.
The deal was upsized from $150 million.
The rate will reset June 1, 2025 to a floating rate of SOFR plus 512 bps.
Piper Sandler & Co., J.P. Morgan Securities LLC and Keefe, Bruyette & Woods, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
Phoenix-based Western Alliance Bank is part of Western Alliance Bancorp.
| Issuer: | Western Alliance Bank
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| Amount: | $225 million
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| Description: | Fixed-to-floating rate subordinated notes
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| Maturity: | June 1, 2030
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| Bookrunners: | Piper Sandler & Co., J.P. Morgan Securities LLC and Keefe, Bruyette & Woods, Inc.
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| Coupon: | 5.25%; resets June 1, 2025 to SOFR plus 512 bps
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| Spread: | Treasuries plus 456 bps
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| Call feature: | June 1, 2025 and every interest payment date thereafter at par
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| Trade date: | May 20
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| Settlement date: | May 22
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| Ratings: | Moody’s: Baa2
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| S&P: BB+
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| Distribution: | Section 3(a)(2) exempt
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| Price talk: | 5.25% area
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