By James McCandless
San Antonio, July 29 – Univest Financial Corp. priced a $100 million offering of $1,000-par fixed-to-floating rate subordinated notes due Aug. 15, 2030 (Kroll: BBB) with an initial coupon of 5%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
U.S. Bancorp Investments, Inc. is the bookrunner.
Coupons will be payable semiannually until Aug., 15, 2025, then the coupon will be payable on each Feb. 15, May 15, Aug. 15 and Nov. 15.
The coupon is fixed until Aug. 15, 2025, then converts to a floating rate of the three-month SOFR plus 495.2 basis points.
The notes are redeemable on or after Aug. 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par.
Univest plans to use the proceeds for general corporate purposes.
The company does not plant to list the notes on any securities exchange.
Univest is a Souderton, Pa.-based bank holding company.
| Issuer: | Univest Financial Corp.
|
| Description: | Fixed-to-floating rate subordinated notes
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| Amount: | $100 million
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| Maturity: | Aug. 15, 2030
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| Bookrunner: | U.S. Bancorp Investments, Inc.
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| Co-manager: | PNC Capital Markets LLC
|
| Coupon: | 5% until Aug. 15, 2025, then converts to a floating rate of three-month SOFR plus 495.2 bps
|
| Price: | Par of $1,000
|
| Yield: | 5%
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| Call: | On or after Aug. 15, 2025 at par; prior to that, after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par
|
| Pricing date: | July 29
|
| Settlement date: | Aug. 5
|
| Rating: | Kroll: BBB
|
| Distribution: | SEC registered
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