Valley National Bancorp Prices $500M 6.219% Subordinated Notes Due 2036
Valley National Bancorp priced $500 million of 6.219% fixed-to-floating rate subordinated notes due 2036, paying 6.219% through May 2031 and transitioning to Three-Month SOFR plus 243 basis points thereafter. Proceeds will refinance its 3.00% subordinated notes maturing June 2031 and support general corporate purposes.
1. Pricing and Terms
Valley National Bancorp has issued $500 million of fixed-to-floating rate subordinated notes due May 15, 2036. The notes carry a 6.219% fixed coupon until June 1, 2031, then convert to a floating rate equal to Three-Month SOFR plus 243 basis points, payable quarterly. These notes qualify as Tier 2 capital under regulatory guidelines.
2. Use of Proceeds
Net proceeds from the offering will be used to redeem or repay Valley’s existing 3.00% fixed-to-floating rate subordinated notes due June 15, 2031 and for general corporate purposes. The transaction enhances the company’s capital structure by locking in longer-term funding at a higher initial yield.
3. Closing and Management
The offering is expected to close on May 14, 2026, subject to customary conditions. Keefe, Bruyette & Woods, Morgan Stanley, RBC Capital Markets and R. Seelaus are managing the issuance under an effective SEC shelf registration.