Fulton Financial Raises $300M in 5.95% Fixed-to-Floating Subordinated Notes
Fulton Financial priced a $300 million offering of fixed-to-floating rate subordinated notes due 2036, carrying a 5.950% fixed coupon through May 15, 2031 and thereafter three-month SOFR plus 217 basis points. Net proceeds will retire $195 million of 3.250% notes maturing in 2030 and support general corporate purposes.
1. Offering Pricing
Fulton Financial announced the pricing of $300 million aggregate principal amount of fixed-to-floating rate subordinated notes due 2036. The notes carry a 5.950% fixed coupon from May 5, 2026 to May 15, 2031 and thereafter pay three-month SOFR plus 217 basis points, with settlements expected on or about May 5, 2026.
2. Use of Proceeds
Net proceeds from the offering will be used to redeem $195 million aggregate principal amount of existing 3.250% fixed-to-floating rate subordinated notes due 2030, reducing upcoming debt maturities, with any remaining funds deployed for general corporate purposes to support ongoing operations and strategic initiatives.
3. Redemption Features
The new notes are callable at 100% of principal plus accrued interest beginning May 15, 2031 and on any date thereafter. This structure provides Fulton with the flexibility to manage its capital stack and interest expense in response to future market conditions.