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Banks (Finance)

Horizon Bancorp Completes $100 Million Private Placement of Subordinated Notes

Strategic Insights

— 1 min read

Horizon Bancorp, the parent company of Horizon Bank, has completed a private placement of $100 million in aggregate principal amount of 7.00% Fixed-to-Floating Rate Subordinated Notes due 2035. The net proceeds of the placement will be used for general corporate purposes, including the potential repositioning of its balance sheet, and to redeem approximately $56.5 million in aggregate principal amount of 5.625% Fixed-to-Floating Rate Subordinated Notes due 2030. The Notes have been structured to qualify as Tier 2 capital for Horizon for regulatory capital purposes.

Key Takeaways:

  • Horizon Bancorp, the parent company of Horizon Bank, has completed a $100 million private placement of 7.00% Fixed-to-Floating Rate Subordinated Notes due 2035.
  • The net proceeds of the placement will be used for general corporate purposes, including the potential repositioning of its balance sheet, and to redeem approximately $56.5 million in aggregate principal amount of 5.625% Fixed-to-Floating Rate Subordinated Notes due 2030.
  • The Notes will initially bear interest at a fixed interest rate of 7.00% per annum until September 15, 2030, after which time the interest rate will reset quarterly to a floating rate equal to the then-current three-month term Secured Overnight Financing Rate (SOFR) plus 360 basis points until the Notes' maturity on September 15, 2035.
  • The Notes are redeemable by Horizon, in whole or in part, on any interest payment date on or after September 15, 2030, and at any time upon the occurrence of certain events.
  • The Notes have been structured to qualify as Tier 2 capital for Horizon for regulatory capital purposes.
  • Performance Trust Capital Partners, LLC and Keefe, Bruyette & Woods, A Stifel Company acted as joint placement agents for the transaction and were represented by Alston & Bird LLP.
  • Warner Norcross + Judd LLP served as legal counsel to Horizon.

Statistics:

  • Aggregate principal amount of subordinated notes: $100,000,000
  • Fixed interest rate: 7.00% per annum
  • Floating interest rate: quarterly reset to SOFR plus 360 basis points
  • Notes' maturity date: September 15, 2035
  • Redemption amount: $56,500,000
  • Horizon Bank's asset size: $7.7 billion (as of June 30, 2025)

Sources:

  • "Horizon Bancorp, Inc. Completes Private Placement of $100 Million Subordinated Notes" (GLOBE NEWSWIRE, August 29, 2025)
  • Horizon Bancorp, Inc. investor.horizonbank.com

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