Horizon Bancorp, Inc. has just announced the completion of a $100 million subordinated notes offering. The offering consists 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 redeeming 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 the interest rate will reset quarterly to a floating rate equal to a benchmark rate, 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 have been structured to qualify as tier 2 capital for regulatory capital purposes. 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 bank serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Notably, commercial lending represents over half of the total loans provided by the bank. 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.
