Investment Banking - CNB Financial Corporation
Transactions | Banking
Client: CNB Financial Corporation
Transaction Type: Subordinated Notes
Role: Co-Placement Agent
CNB Financial Corporation Announces Closing of $85 Million
of 3.25% Fixed-to-Floating Rate Subordinated Notes
- CNB Financial Corporation (NASDAQGS: CCNE) (the “Company”), a bank holding company with approximately $4.9 billion in assets as of March 31, 2021, conducts business through its wholly owned subsidiary, CNB Bank (the “Bank”). Founded in 1865, the Bank is headquartered in Clearfield, Pennsylvania and operates 44 banking offices in Pennsylvania, Ohio, and New York.
- On June 3, 2021, the Company announced the completion of a private placement of $85.0 million in an aggregate principal amount of its 3.50% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”) to various qualified institutional buyers and accredited investors (the “Placement”). The Notes are rated BBB- by Kroll Bond Rating Agency.
- The Subordinated Notes will initially bear a fixed interest rate of 3.25% for five years, after which time until maturity on June 15, 2031, the interest rate will reset quarterly to an annual floating rate equal to the Three-Month Term SOFR (as defined in the Notes), plus a spread of 258 basis points. The Subordinated Notes are redeemable by the Company at its option, in whole or in part, on or after June 15, 2026. The Subordinated Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws.
- The Company intends to use the net proceeds from the Placement for general corporate purposes, which may include the planned redemption of $50.0 million of outstanding subordinated debt callable in October 2021 and support of additional loan growth.
- Boenning & Scattergood served as a co-placement agent in the transaction.