Co-Manager
Allegiance Bancshares, Inc.
Debt Capital Markets
Subordinated Notes
Transaction Details
- On September 20, 2019, Allegiance Bancshares, Inc. (the “Company” or “Allegiance”), priced a $60,000,000 public offering of Fixed-to-Floating Rate Subordinated Notes
- The Company intends to use the net proceeds from the offering to support its growth and for general corporate purposes
- The Notes are intended to qualify as Tier 2 capital for regulatory purposes
- The Notes bear a fixed rate of 4.70% for the first 5 years, and 3-month LIBOR plus 3.13% until the Notes mature on October 1, 2029
- Kroll Bond Rating Agency rated the Notes BBB-
About the company
Through its wholly owned subsidiary, Allegiance Bank, Allegiance provides a diversified range of commercial banking services primarily to small to medium-sized businesses and individual customers in the Houston region. Allegiance’s super-community banking strategy was designed to foster strong customer relationships while benefiting from a platform and scale that is competitive with larger local and regional banks. As of June 30, 2019, Allegiance Bank operated 27 full-service banking locations in the Houston region (defined as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas) with 26 bank offices and one loan production office in the Houston metropolitan area and one bank office location in Beaumont, just outside of the Houston metropolitan area.
Sources: Company filings and S&P Global
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This material has been prepared solely for informative purposes as of its stated date and is not a solicitation, or an offer, to buy or sell any security. It does not purport to be a complete description of the securities, markets or developments referred to in the material. Information included in the material was obtained from sources which we consider reliable, but we have not independently verified such information and do not guarantee that it is accurate or complete. Such information is believed to be accurate on the date of issuance of the material. No subsequent publication or distribution of this material shall mean or imply that any such information or opinion remains current at any time after the stated date of the material. We do not undertake to advise you of any changes in any such information or opinion. Additional information is available upon request.
The offering of these securities is being made only by means of a prospectus, copies of which may be obtained from Stephens Inc.’s Fixed Income Syndicate Desk, at Stephens Inc., 111 Center Street, Little Rock, AR 72201, ATTN: Fixed Income Syndicate Desk, or from the Securities and Exchange Commission’s website at www.sec.gov at the following link: https://www.sec.gov/Archives/edgar/data/1642081/000156459019035184/abtx-424b5.htm. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the notice of its acceptance given after the effective date.