Midland States Bancorp, Inc. Announces Issuance of $100 Million in Subordinated Notes
September 20 2019 - 2:53PM
Midland States Bancorp, Inc. (NASDAQ: MSBI) (the “Company” or
“Midland”) announced today the issuance of $100 million aggregate
principal amount of fixed-to-floating rate subordinated notes (the
“Notes”), consisting of $72.75 million of 10-year notes (the
“10-Year Notes”) and $27.25 million of 15-year notes (the “15-Year
Notes”) in a private placement transaction. The proceeds from
the issuance will be used to repay a $30.0 million term loan,
redeem $40.3 million of subordinated debt on or after the date that
debt first becomes callable on June 18, 2020, and for general
corporate purposes.
The 10-year Notes have an initial fixed rate of
5.00% per annum, mature on September 30, 2029, and become callable
September 30, 2024. The 15-year Notes have an initial fixed
rate of 5.50% per annum, mature September 30, 2034, and become
callable beginning September 30, 2029.
“We are pleased to take advantage of attractive
pricing in the fixed income markets to raise funding to repay our
senior debt and be in a position to refinance much of our
subordinated debt with less expensive and longer-term funds,” said
Jeffrey G. Ludwig, President and Chief Executive Officer of
Midland. “This funding also provides us with additional
flexibility to continue executing on our organic and acquisitive
growth strategies.”
Sandler O’Neill + Partners, L.P. acted as the
sole placement agent for the Notes.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a
community-based financial holding company headquartered in
Effingham, Illinois, and is the sole shareholder of Midland States
Bank. As of June 30, 2019, the Company had total assets of
approximately $5.55 billion and its Wealth Management Group had
assets under administration of approximately $3.13 billion. Midland
provides a full range of commercial and consumer banking products
and services, business equipment financing, merchant credit card
services, trust and investment management, and insurance and
financial planning services. In addition, multi-family and
healthcare facility FHA financing is provided through Love Funding,
Midland’s non-bank subsidiary. For additional information, visit
https://www.midlandsb.com/ or follow Midland on LinkedIn at
https://www.linkedin.com/company/midland-states-bank.
Forward-Looking Statements
Readers should note that in addition to the
historical information contained herein, this press release
includes "forward-looking statements" within the meanings of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including but not
limited to statements about the Company’s financing and use of
proceeds from the notes offering. These statements are
subject to many risks and uncertainties, including changes in
interest rates and other general economic, business and political
conditions, including changes in the financial markets; changes in
business plans as circumstances warrant; risks relating to
acquisitions; and other risks detailed from time to time in filings
made by the Company with the Securities and Exchange
Commission. Readers should note that the forward-looking
statements included in this press release are not a guarantee of
future events, and that actual events may differ materially from
those made in or suggested by the forward-looking statements.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "will," "propose," "may,"
"plan," "seek," "expect," "intend," "estimate," "anticipate,"
"believe" or "continue," or similar terminology. Any
forward-looking statements presented herein are made only as of the
date of this press release, and the Company does not undertake any
obligation to update or revise any forward-looking statements to
reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise.
CONTACTS:Douglas J. Tucker, Sr.
V.P., Corporate Counsel, at dtucker@midlandsb.com or (217)
342-7321
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