Horizon Bancorp, Inc. has announced the completion of a $100 million subordinated notes offering, with the intention to use the net proceeds for general corporate purposes, potentially including the repositioning of its balance sheet, and to redeem approximately $56.5 million of existing subordinated notes due 2030.
The notes, which have a fixed interest rate of 7.00% per annum until September 15, 2030, will then 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 are redeemable by Horizon on or after September 15, 2030, and at any time upon the occurrence of certain events.
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 Midwestern markets through digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include residential and other secured consumer lending, along with personal banking and wealth management solutions. The bank also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions. Commercial lending represents over half of the total loans.
More information on Horizon Bancorp, Inc. is available at horizonbank.com and investor.horizonbank.com. As a result of these announcements, the company's shares have moved -0.12% on the market, and are now trading at a price of $16.86. For the full picture, make sure to review HORIZON BANCORP INC /IN/'s 8-K report.
