New Issue: First Bancshares places $66 million fixed-to-floaters in two tranches

By Devika Patel

Knoxville, Tenn., May 1 – First Bancshares, Inc. said it has settled a $66 million private placement of fixed-to-floating rate subordinated notes. Stephens Inc. and Hovde Group LLC were the agents.

There were $24 million of 10-year notes. Interest accrues at 5.875% per year until May 1, 2023. From May 1, 2023 onwards, the notes will bear interest at a floating rate equal to Libor plus 294 basis points.

The company agreed to sell $42 million of 15-year notes. Interest accrues at 6.4% per year until May 1, 2028. From May 1, 2028 onwards, the notes will bear interest at a floating rate equal to Libor plus 339 basis points.

Proceeds will be used for general corporate purposes.

First Bancshares is a Mountain Grove, Mo., community bank.

Issuer:	First Bancshares, Inc.
Issue:	Subordinated notes
Amount:	$66 million
Agents:	Stephens Inc. and Hovde Group LLC
Settlement date:	May 1
Distribution:	Private placement
10-year notes
Amount:	$24 million
Maturity:	May 1, 2028
Coupon:	5.875% until May 1, 2023, then at Libor plus 294 bps
Call feature:	Non-callable for five years, then callable at par
15-year notes
Amount:	$42 million
Maturity:	May 1, 2033
Coupon:	6.4% until May 1, 2028, then at Libor plus 339 bps
Call feature:	Non-callable for 10 years, then callable at par

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