Horizon Bancorp, Inc. has just completed a $100 million subordinated notes offering. The offering consists of 7.00% fixed-to-floating rate subordinated notes due 2035. The company plans to utilize the net proceeds for general corporate purposes 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 interest 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, 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. Additionally, the notes have been structured to qualify as tier 2 capital for Horizon for regulatory capital purposes.
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.
Furthermore, as of June 30, 2025, Horizon Bancorp, Inc. is a $7.7 billion-asset commercial bank holding company for Horizon Bank, serving customers across diverse and economically attractive Midwestern markets through digital and virtual tools, as well as its Indiana and Michigan branches. Additionally, 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. Horizon also 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. The market has reacted to these announcements by moving the company's shares -0.12% to a price of $16.86. Check out the company's full 8-K submission here.
