First Interstate BancSystem Announces $125M Offering

By Ahmed Jameison • Sunday, June 08 10:12 • Permanent Link

First Interstate BancSystem, Inc. has announced the pricing of its public offering of $125 million aggregate principal amount of 7.625% fixed-to-floating rate subordinated notes due 2035. The notes will pay interest at a rate of 7.625% per annum from the original issue date to, but excluding, June 15, 2030, and then at a floating rate per annum equal to a benchmark rate, expected to be three-month term SOFR, plus a spread of 398 basis points from, and including, June 15, 2030, payable quarterly in arrears. The net proceeds of the offering are estimated to be approximately $123.1 million, and the company intends to use the proceeds to redeem its existing 5.25% fixed-to-floating rate subordinated notes due 2030 on August 15, 2025, with any remaining proceeds allocated for general corporate purposes.

The offering is expected to close on June 10, 2025, and Keefe, Bruyette & Woods, a Stifel company, is acting as the sole book-running manager for the offering.

First Interstate BancSystem, Inc. is a financial and bank holding company with banking offices across several states and offers online and mobile banking services. Through its bank subsidiary, First Interstate Bank, the company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities, and others throughout its market areas. As a result of these announcements, the company's shares have moved 2.54% on the market, and are now trading at a price of $27.89. If you want to know more, read the company's complete 8-K report here.

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