By Wendy Van Sickle
Columbus, Ohio, June 30 – Equity Bancshares, Inc. completed a private placement of $33 million of additional fixed-to-floating rate subordinated notes due 2030 (Egan-Jones: BBB), bringing the total to $75 million, according to a news release.
The company placed $42 million of the notes on June 29.
The notes pay a fixed rate of interest at 7% for the first five years and then switch to a floating rate of SOFR plus 688 basis points, with a 0% SOFR floor.
The notes are callable at par after five years.
The notes qualify as tier 2 capital.
Piper Sandler & Co. was the lead placement agent.
Equity intends to use the net proceeds for general corporate purposes, including repayment of the entire $40 million currently drawn under its senior credit facility and for opportunistic growth.
The company also announced the renewal of the senior credit facility with ServisFirst Bank.
The new maturity date is Aug. 15, 2021. The credit facility has floating rate equal to the Prime rate then in effect with a floor of 3.5%. The maximum commitment under the senior credit facility is $40 million.
Equity Bancshares is a Wichita, Kan., bank holding company.
| Issuer: | Equity Bancshares, Inc.
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| Issue: | Tier 2 fixed-to-floating rate subordinated notes
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| Amount: | $33 million add-on
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| Total issue size: | $75 million
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| Maturity: | June 30, 2030
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| Placement agents: | Piper Sandler & Co. (lead), Stephens Inc. and Keefe, Bruyette & Woods (co)
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| Coupon: | 7%; from June 30, 2025 at SOFR plus 688 bps with 0% SOFR floor
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| Call: | Starting June 30, 2025 and on subsequent interest payment dates at par
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| Settlement date: | July 23
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| Rating: | Egan-Jones: BBB
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| Distribution: | Private placement
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