Horizon Bancorp, Inc. (NASDAQ: HBNC) has successfully completed a private placement of $100,000,000 in aggregate principal amount of 7.00% fixed-to-floating rate subordinated notes due 2035. The company intends to use the net proceeds for general corporate purposes, including potentially repositioning its balance sheet, and to redeem approximately $56.5 million in aggregate principal amount of 5.625% fixed-to-floating rate subordinated notes due 2030.
The notes will initially bear interest at a fixed rate of 7.00% per annum until September 15, 2030, after which time the interest rate will reset quarterly to a floating rate equal to a benchmark rate, which is expected to be the then current three-month term secured overnight financing rate (SOFR) plus 360 basis points until the notes' maturity on September 15, 2035. The notes are redeemable by Horizon, in whole or in part, on any interest payment date on or after September 15, 2030, and at any time upon the occurrence of certain events. The notes have been structured to qualify as tier 2 capital for Horizon for regulatory capital purposes.
In addition, the company also announced that Performance Trust Capital Partners, LLC and Keefe, Bruyette & Woods, a Stifel company, acted as joint placement agents for the transaction and were represented by Alston & Bird LLP. Warner Norcross + Judd LLP served as legal counsel to Horizon.
As of June 30, 2025, Horizon Bancorp, Inc. is a $7.7 billion-asset commercial bank holding company for Horizon Bank. The company serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Their retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Additionally, Horizon provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. Following these announcements, the company's shares moved -0.12%, and are now trading at a price of $16.86. For more information, read the company's full 8-K submission here.
