Chicago, June 30 – Home Bancorp, Inc. closed a $55 million subordinated note offering of 5.75% fixed-to-floating-rate subordinated notes due 2032 (Egan-Jones: A-) in a private offering, according to a press release.
The 10-year notes will carry the 5.75% fixed-rate coupon for the first five years.
The interest rate will reset quarterly to SOFR plus 282 basis points for the last five years.
The notes are callable, in whole or in part, on any interest payment date on or after June 30, 2027.
The company entered into a registration rights agreement with the purchasers of the notes where the company has agreed to take certain actions to provide for the exchange of the notes for subordinated notes registered under the Securities Act of 1933.
The notes qualify as tier 2 capital for the issuer for regulatory capital purposes.
Piper Sandler & Co. served as lead placement agent for this offering and Hovde Group, LLC and Performance Trust Capital Partners, LLC served as co-placement agents.
Proceeds will be used for general corporate purposes, including to support organic growth, enhance Home Bank's capital position, to fund share repurchases and for potential future mergers and acquisitions.
The holding company of 113-year-old Home Bank, NA is based in Lafayette, La.
| Issuer: | Home Bancorp, Inc.
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| Amount: | $55 million
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| Issue: | Tier 2 fixed-to-floating-rate subordinated notes
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| Maturity: | June 30, 2032
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| Placement agents: | Piper Sandler & Co., Hovde Group, LLC and Performance Trust Capital Partners, LLC
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| Counsel to issuer: | Silver, Freedman, Taff & Tiernan LLP
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| Counsel to agents: | Fenimore Kay Harrison LLP
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| Coupon: | 5.75% fixed rate for first five years; quarterly resets at SOFR plus 282 bps
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| Call features: | At par starting on June 30, 2027 and any interest payment date going forward
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| Settlement date: | June 30
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| Ratings: | Egan-Jones: B-
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| Distribution: | Private placement
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