Renasant prices $300M 6.25% fixed-to-floating subordinated notes due 2036
Renasant Corporation priced $300 million of 6.25% fixed-to-floating subordinated notes due 2036, with a fixed 6.25% coupon through June 2031 and then Three-Month SOFR plus 245 basis points. Proceeds will bolster Tier 2 capital and may redeem $40 million of the company’s 5.50% subordinated notes due 2031.
1. Pricing Details
Renasant Corporation announced the pricing of $300 million aggregate principal of 6.25% fixed-to-floating rate subordinated notes due 2036. Interest is fixed at 6.25% through June 1, 2031, then resets quarterly at Three-Month SOFR plus 245 basis points until maturity.
2. Capital Treatment and Use of Proceeds
The notes are intended to qualify as Tier 2 regulatory capital, strengthening the company’s capital base. Net proceeds will support general corporate purposes, including funding strategic initiatives and improving liquidity.
3. Redemption of Existing Notes
The company may redeem the notes, in whole or in part, on or after June 1, 2031, at 100% of principal plus accrued interest. Renasant plans to use proceeds to potentially redeem $40 million of its 5.50% fixed-to-floating subordinated notes due September 1, 2031.