South Plains Financial, Inc. Completed Private Placement of $50.0 Million of 4.50% Fixed-To-Floating Rate Subordinated Notes
September 29, 2020 at 05:10 pm EDT
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South Plains Financial, Inc. announced the completion of its private placement of $50.0 million in fixed-to-floating rate subordinated notes due 2030. The Notes bear interest at a fixed rate of 4.50% for the first five years, and the interest rate will reset quarterly thereafter to the then current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York, plus 438 basis points. The company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after September 30, 2025, or at any time, in whole but not in part, upon certain other specified events. The Notes are intended to qualify as Tier 2 capital for South Plains for regulatory capital purposes. The Company intends to use the net proceeds from the offering for general corporate purposes. Piper Sandler & Co. served as placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to the Company and Fenimore, Kay, Harrison & Ford, LLP, served as legal counsel to the placement agent.
South Plains Financial, Inc. is the bank holding company for City Bank (the Bank). The Bank is an independent bank in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. The Bank provides a range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. The Banks principal business activities include commercial and retail banking, along with investment, trust, and mortgage services. The Bank is primarily involved in real estate, commercial, agricultural and consumer lending activities with customers throughout Texas and Eastern New Mexico. The Bank operates about 25 full-service banking locations across seven geographic markets. The Bank also operates about eight loan production offices both in its banking markets and in certain key areas in Texas that focus on mortgage loan origination.
SOUTH PLAINS FINANCIAL, INC. 
