Loan & DebtJun 17, 2026, 04:07 PM
Enterprise Financial Issues $175M 6.25% Subordinated Notes
AI Summary
Enterprise Financial Services Corp completed the issuance and sale of $175 million aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Notes due 2036. The offering generated approximately $172.8 million in net proceeds, which the company intends to use for general corporate purposes, including debt repayment, dividends, supporting organic growth, strategic acquisitions, and providing regulatory capital to its subsidiary bank. The notes will bear a fixed interest rate until July 2031, then switch to a floating rate based on Three-Month Term SOFR.
Key Highlights
- Issued $175 million aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Notes due 2036.
- Notes bear an initial fixed interest rate of 6.25% per annum, payable semi-annually until July 1, 2031.
- Interest will switch to a floating rate of Three-Month Term SOFR + 232 basis points from July 1, 2031.
- Net proceeds to the Company were approximately $172.8 million after a 1.25% underwriting discount.
- Proceeds will be used for general corporate purposes, including debt repayment, dividends, and growth initiatives.
- The Company may redeem the notes starting July 1, 2031, or upon specific tax or capital events.
- Notes rank junior to senior indebtedness and are structurally subordinated to subsidiary liabilities.
Price Impact
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