UnionBanCal obtains $300 million subordinated term loan due 2023

By Toni Weeks

San Luis Obispo, Calif., Jan. 2 - UnionBanCal Corp. entered into a subordinated term loan agreement on Dec. 27 with parent company Bank of Tokyo-Mitsubishi UFJ, Ltd., according to an 8-K filed Thursday with the Securities and Exchange Commission.

The agreement, for a $300 million unsecured loan that matures Dec. 27, 2023, bears interest at Libor plus 138 basis points.

The loan may be prepaid in whole or in part after Dec. 27, 2018 with written approval of the Federal Reserve Board.

The company expects to treat the proceeds of the loan as tier 2 capital for U.S. bank holding company regulatory capital purposes, the filing noted.

The financial and commercial bank holding company is based in San Francisco.

© 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.