BancFirst Corporation Completes Private Placement as Amended, of $60.00 Million Aggregate Principal Amount of its 3.50% Fixed-To-Floating Rate Subordinated Notes Due 2036
June 17, 2021 at 09:54 pm
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On June 17, 2021, BancFirst Corporation (the “Company”) completed a private placement, under Regulation D of the Securities Act of 1933, as amended, of $60.00 million aggregate principal amount of its 3.50% Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Subordinated Notes”) to various “institutional accredited investors” (collectively the “Offering”). The Subordinated Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines. The estimated net proceeds to the Company from the sale of the Subordinated Notes are approximately $59.15 million after deducting commissions and estimated offering expenses. The Company expects to use the proceeds from the sale of the Subordinated Notes for general corporate purposes. The Subordinated Notes will initially bear interest at a fixed rate of 3.50% per annum, from and including June 17, 2021 to but excluding June 30, 2031, payable semi-annually in arrears on June 30 and December 31 of each year, commencing December 31, 2021. Then, from and including June 30, 2031, to but excluding the maturity date, the Subordinated Notes will bear interest at a floating rate equal to the benchmark (initially, three-month term SOFR), reset quarterly, plus a spread of 229 basis points, payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. The Company may, at its option, beginning with the interest payment date of June 30, 2031, and on any scheduled interest payment date thereafter, redeem the Subordinated Notes, in whole or in part. In addition, the Company may redeem all, but not less than all, of the Subordinated Notes at any time upon the occurrence of a “Tier 2 Capital Event,” a “Tax Event” or an “Investment Company Event” (each as defined in the Subordinated Notes). Any such redemption is subject to obtaining the prior approval of the Board of Governors of the Federal Reserve System (or its designee). The redemption price with respect to any such redemption will be equal to 100% of the principal amount of the Subordinated Note, or portion thereof, to be redeemed, plus accrued but unpaid interest, if any, thereon to, but excluding, the redemption date. The Subordinated Notes mature on June 30, 2036. The sale of the Subordinated Notes was pursuant to a Subordinated Note Purchase Agreement entered into with each of the investors.
BancFirst Corporation is a financial holding company, which operates through its subsidiaries, BancFirst and Pegasus Bank, which are a state-chartered banks. The Company has six business units: metropolitan banks, community banks, Pegasus, Worthington, other financial services and executive, operations, and support. Metropolitan banks, community banks, Pegasus and Worthington offers commercial and retail lending, a full line of deposit accounts and other. Metropolitan banks consist of banking locations in the metropolitan Oklahoma City and Tulsa areas. Community banks consist of banking locations in communities throughout Oklahoma. Pegasus consists of banking locations in the Dallas metropolitan area. Worthington consists of banking locations in the Fort Worth metropolitan area. Other financial services are specialty product business units, including guaranteed small business lending, residential mortgage lending, trust services, securities brokerage, electronic banking and insurance.
BancFirst Corporation Completes Private Placement as Amended, of $60.00 Million Aggregate Principal Amount of its 3.50% Fixed-To-Floating Rate Subordinated Notes Due 2036